Thursday, February 4, 2010

Why the iPad is Bad for Consumers


The iPad which was announced earlier this months, hasn’t even released yet and we are now seeing ways in which the iPad may be bad for consumers.

Apple Insider is reporting that book publishers are getting ready to renegotiate their prices with Amazon.  Apparently, Apple has negotiated for a higher price on books than Amazon has, and so book publishers are now turning to Amazon and pushing them for a higher price on their books as well.

The first publisher to push for higher prices was Macmillan who last week entered into a stand off with Amazon over pricing.  Macmillan ended up forcing Amazon to temporarily suspend sales of all of Macmillan’s books, until Amazon caved and gave in to Macmillan’s demand for higher prices.   Its just unfortunate that Macmillan will not be the last publisher to do renegotiate.

Rupert Murdoch, Chairman of News Corp., during an earnings call mentioned that his publisher HarperCollins was also planning to renegotiate their books pricing with Amazon. 

Currently Amazon is selling books on the Kindle book store for $9.99, but its rumoured that Apple has negotiated for prices on new hardcover bestsellers of $12.99 and $14.99.

Its really disappointing to see Apple doing something that would negatively impact their consumers.  But then again, I guess Apple needed to in order to get into the book reader market.  I just wished that Apple would have pushed a little harder for lower prices.

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