AAPL vs. AMZN: E-Books
E-books belong under the digital media category, but they’ve been spiked out because the amount of activity in this area lately.
While Amazon was first to the scene with its Kindle e-books, Apple opened its own iBookstore where it competes with AMZN by selling digital copies of everything from novels to textbooks.
Amazon released a Kindle app for the iPad, allowing Kindle owners to read their e-books on their AAPL device. However, Apple raised the heat by enforcing an App Store rule that would have made AMZN pay AAPL 30% of every e-book purchase through that Kindle app. The move forced Amazon to yank purchasing capability and have users launch Apple’s Safari web browser to buy Kindle e-books.
Over the past few months, Amazon has been locked in a pricing struggle with publisher Hachette Book Group and refusing to take pre-orders on some books. AAPL made it known that its iBookStore sell the disputed titles, and even offered them at sale prices.
Then, on July 18, Amazon announced Kindle Unlimited, a $9.99 monthly unlimited access plan for Kindle e-books.
The most recent move in the E-Book battle has been Apple’s acquisition of BookLamp, a startup that has been called the Pandora (P) of books — setting the stage for yet another battle between AMZN and AAPL.