“Since Apple announced plans to sell digital books on its forthcoming iPad, it has been cast as something of a savior of the publishing industry for allowing e-book prices to go above the $9.99 that Amazon charges for e-books on its Kindle device, a price that publishers say is too low to sustain their business,” Rich reports. “But as more details come to light of the actual negotiations between Apple and publishers, it appears that Apple left room to sell some of the most popular books at a discount.”
Rich reports, “According to at least three people with knowledge of the discussions, who spoke anonymously because of the confidentiality of the talks, Apple inserted provisions requiring publishers to discount e-book prices on best sellers — so that $12.99-to-$14.99 range was merely a ceiling; prices for some titles could be lower, even as low as Amazon’s $9.99. Essentially, Apple wants the flexibility to offer lower prices for the hottest books, those on one of the New York Times best-seller lists, which are heavily discounted in bookstores and on rival retail sites. So, for example, a book that started at $14.99 would drop to $12.99 or less once it hit the best-seller lists.”
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