Printed from http://www.electronista.com

Apple tablet due March, to get Kindle-killer book deal?

updated 08:55 am EST, Wed December 9, 2009

Apple device at 1m a month, 70-30 revenue split

Apple's often-rumored tablet device has been narrowed down to a specific production timeframe and could land a deadly blow against Amazon's Kindle reader through a revenue deal, according to an unusually detailed research note from Oppenheimer analyst Yair Reiner. Investigations into Apple's supply network claim the widely reported 10-inch, multi-touch device will be put into mass production in February with a likely launch target of March or April. As many as 1 million will be made every month, according to the sources.

Reiner estimates that, if the device was typically priced at about $1,000, Apple could sell anywhere between 1 million to 1.5 million tablets every quarter. He debunks notions of OLED tablets but is relatively conservative in pricing, as some have expected the tablet to cost $800 or less still if it includes 3G and is subsidized by a carrier.

More important may be an e-book publishing deal attached to the device, the analyst says. He cites American sources that claim Apple will deliberately provide a much more attractive deal than Amazon's Kindle Store and will continue to take only a 30 percent cut of revenues as it does through the App Store and at iTunes, even with non-exclusives. Amazon's terms are often described as "wolfish" and punish non-exclusives by increasing Amazon's take to 50 percent.

Apple also wouldn't play favorites in its content deals or preclude advertising, which to date hasn't been allowed for the Kindle even with magazines and newspapers.

The note while unconfirmed backs separate rumors that Apple has been talking to print publishers and will emphasize e-book reading on any future tablet device even if the hardware continues to stress media playback, web browsing and other features drawn from the iPhone and iPod touch. Publicly, Apple chief Steve Jobs has repeatedly dismissed e-readers but has historically been known to "feint" by denying interest in a category like cellphones or portable video only to launch a product when he and Apple believe it can provide a better product.



By Electronista Staff
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Comments

  1. kwnewton

    Fresh-Faced Recruit

    Joined: Dec 2009

    +9

    Dedicated eReaders are popular for a reason

    Actually, several reasons. Is this 10 inch tablet going to have an easy-on-the-eyes e-ink screen, a battery that lasts for weeks, come with free 3G access, and fit in an average sized purse? Because otherwise, no matter how well it sells, it won't kill the dedicated eReader market. It will probably cut into netbook sales more than eReaders. But if people do buy it to read ebooks, that's great because reading is what's endangered. Publishers want a better deal than Amazon is giving them, which in understandable, but readers (the people, not the devices) want to be able to read with convenience and comfort.

    Where a color tablet could have a huge impact is magazine and newspaper sales. A lot of it will depend on how Apple prices their device and whether publishers are willing to subsidize the hardware purchase by bundling long-term subscriptions into the deal.



  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +4

    There is definitely a need for a low-cost

    eReader device for the mass market. They should take the place of paper books, newspapers and magazines. Schools and libraries should go forward in replacing paper literature with eReaders. I'd still want my expensive Apple device that will likely be able to do a lot more than just reading literature. If it's just a large display iPod Touch it would certainly satisfy all my needs. If it's well-constructed and I can get AppleCare on it and if it costs more, I don't really care. I'd like about 10 hours battery life to get me through the day without worry. I know I'm ready for it and I hope it does come out early next year. I feel the Apple tablet will succeed where other's failed.

  1. MisterMe

    Fresh-Faced Recruit

    Joined: May 2007

    +4

    Re: Dedicated eReaders are popular for a reason

    There is popular and then there is popular. Assuming that the Apple Tablet is more than a rumor, my bet is that the Kindle may actually get a boost from the new Tablet's entry into the market. However, it will be an "also ran." Begin with the functionality of today's Kindle. Add the the functionality afforded by the QuickTime frameworks. Do you still need that portable DVD player? Do you need to rent DVDs in the airport? Your textbook with the bundled CD educational software now fit in a package not much bigger than the CD along with your entire library of textbooks and supplementary materials from all of your instructors. Magazines? newspapers? with dynamically updated material.

    If it can be put on paper, if it can be punched using a keypad or keyboard, if it can be put on screen, then from wherever in the World it originates it can be carried with you wherever in the World you go. It can be sent from wherever you are to whomever needs it.

    Å new world is coming.

  1. nat

    Junior Member

    Joined: Mar 2002

    +6

    digital

    I'm gradually stopping my print subscriptions and going with digital magazines (exacteditions and zinio). they are the magazine in digital format, ads and all. and i like it that way. it's the same thing i get with the printed one but now i just lay in bed with my laptop and read instead of with the magazine.

    if the tablet gives me most of what my laptop does plus a new way to read mag's and newspapers and books, all in a streamlined lite weight form then i can see getting one.

  1. Peter Bonte

    Fresh-Faced Recruit

    Joined: Aug 2001

    +1

    10-inch for $1000 !?

    Apple is indeed a more expensive than others but for mass market devices like the iPod and iPhone there pricing is comparable with other devices, especially with possible extra income via the AppStore. Pricing should be in the $299 - $499 range.

  1. thebiggfrogg

    Fresh-Faced Recruit

    Joined: Jul 2007

    +6

    Give the 'killer' trope a rest...

    iPod killer, iPhone killer, now Kindle killer...whoever this serial killer is they seem to have a horrible success rate.

    Comment buried. Show
  1. testudo

    Forum Regular

    Joined: Aug 2001

    -10

    Re: dedicated is popular for a reason

    If it can be put on paper, if it can be punched using a keypad or keyboard, if it can be put on screen, then from wherever in the World it originates it can be carried with you wherever in the World you go. It can be sent from wherever you are to whomever needs it.

    Ã… new world is coming.


    Give it up. In case you didn't notice, this has been true for well over 15 years (It's called a laptop, and people have been doing it for years, too).

    But, somehow, a magical and mythical apple tablet is going to all of a sudden change the entire print market in like 10 days? And shouldn't Amazon get more of the credit, since they started this revolution more than the others?

    Oh, and I'm sure the 'new world is coming' on music as well, right? I mean, Apple completely upended that. Except the labels still exist and still exert control over so much of it. Yes, you can get digital music, but it still is a small minority compared to CD sales.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -3

    BTW

    If textbooks were going to go digital, they would have started long ago (so many in college have laptops, it wouldn't be that hard you know). But they have no desire or interest in that. They make too much money on a market to risk piracy of their overpriced books in digital form. And it is a captive market. Students have to buy the books (half of which, get this, are authored by their professors - who'd a thunk it!). Esp. when people would just go in an uproar because some textbook that normally sells for $150 in 'paper' form is only cut in price to $125 when everyone would demand it sell for $15 or something stupid like that.

    As for books, how is Apple going to insist that all books be one specific price (you know, like $15 per book!). Not all books are created equal. But we also know from their arguments about music that people require their products to be equi-priced. Having some books go for $10 and others going for $20 would just be too confusing.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -7

    Pricing

    More important may be an e-book publishing deal attached to the device, the analyst says. He cites American sources that claim Apple will deliberately provide a much more attractive deal than Amazon's Kindle Store and will continue to take only a 30 percent cut of revenues as it does through the App Store and at iTunes, even with non-exclusives. Amazon's terms are often described as "wolfish" and punish non-exclusives by increasing Amazon's take to 50 percent.

    Bear in mind that this 'much more attractive deal' is the deal to the publishers, not the consumers.

    Apple also wouldn't play favorites in its content deals or preclude advertising, which to date hasn't been allowed for the Kindle even with magazines and newspapers.

    Hmmm, sounds a lot like what MS would do if they joined a market. Offer better deals to the providers than their competitors to woo in sources and help crush the competition.

  1. nat

    Junior Member

    Joined: Mar 2002

    +7

    oh testudo

    as you so aptly said... give it up.

    haven't we talked about you coming up with something new? have you not been paying attention? you really need to get a new shtick. it's been far too many years.

    if you can't manage to give it up how about just shutting up? we'd all go for that.

    as for your arguments, well, standard testudo fare isn't it. nothing new at all. far too easy to rip apart and not worth the time.

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