Amazon Kindle vs Apple for eBooks. Is an Apple eReader app coming?

The big news today is that Amazon will be offering 70% net royalties for Kindle sales soon. (press release) This announcement is just one day after the Wall Street Journal reported that Apple is working with HarperCollins to bring their eBooks to the iTunes store (WSJ article)

Since Amazon is currently only paying 30%, it looks like they are concerned about Apple. Amazon has other competition paying up to 80%, but that didn't cause them to blink. I suspect that they've known for a while that they would have to raise the rate, and had this plan in the drawer awaiting the need.

But what is Apple going to do? Obviously they will be selling eBooks through their iTunes store for buying and reading on iPod and iPhone devices. Most people expect Apple to introduce a tablet device on the 27th, with assumptions that this device will be running the same operating system as the iPod/iPhone. However, there is a strong possibility that they will be upgrading this from the current version 3.1.2.

Would Apple include an eReader from Apple or HarperCollins? Since the introduction of OS version 3 last year, users could purchase content while within the application. Amazon's Kindle app has yet to take advantage of this feature. But if Apple preloads an eReader onto every new device plus all current devices via an update, they could easily overtake Amazon's sales for books read on the Apple handheld platform.

Apple enjoys selling music, apps (some of which are eBooks), and videos on their iTunes network, but they get no rewards from current book sales from Amazon, even though these books may be read using the iPhone Kindle reader. When Apple provides books on iTunes, they'll take a cut from those sales. Surely they'll want to funnel as much buying to their own iTunes eBooks as possible, and having their own eReader would do just that.

eBook readers get free library books

Sony's announcement that their eBook readers will be able to access library books is huge! Amazon's Kindle set the revolution by providing free lifetime wireless access so that you can browse, buy, and download books straight to the device without having to juggle computer connections. There are free books available, but generally not of the latest publications.

Now, with the ability to check out books from the library, the eBook reader market will explode! I've checked out an audio book from the Houston Library using my laptop at home, and synchronized it with my Windows Mobile phone to listen to the book while jogging. It worked pretty well, and the book expired and disappeared at the end of its checkout period. I was even able to renew it. But this was a novelty for me.

Putting this type of power and ease on a device for the mass market is another story. It will cause people to buy eBook readers, and it will cause libraries to purchase more licenses for simultaneous checkout. Amazon would be foolish not to include this ability in their Kindle.

The need for book publishers to market their books to the library will increase, just as the sales to the library increase. Libraries. Hmm. Makes me think of another eBook angle.

Bigger and cheaper Kindle?

There is not much doubt that a larger Kindle will be announced this Wednesday (http://www.engadget.com/2009/05/04/amazon-press-event-wednesday-may-6th-see-you-and-then-new-kind). By this news alone, one might assume that this device will cost more than the current Kindle 2, which already receives quite a bit of backlash from having a high price.

However, Amazon knows that their price is considered a purchasing barrier. Although I think they've already done a superb job of pricing given that each Kindle includes (currently) unlimited internet access forever, a lower price will surely help sell more.

How can Amazon lower the Kindle's price?
1) Advertising - a larger screen gives more space for ads in addition to content.
2) Subscriptions - Why hasn't a book-of-the-month club offered a subsidized Kindle?

With the New York Times as a partner of this newer Kindle, they have the opportunity to do both, just like they've always done with their print edition.

Personally, I am very comfortable with the size of the current Kindle 2, but wish all my books were e-books on it so that I have access to them at all times (note that I carry an iPhone at all times).

Another rumor is that Kindle will receive support from textbook publishers. If all textbooks needed by students were on this one device, that would make cross campus treks a lot easier!