Quantcast Apple Confirms All Textbooks Will be $14.99--It's Not Pilot Pricing « iPad in Canada Blog - Canada's #1 iPad Resource iPad in Canada Blog – Canada's #1 iPad Resource

Apple Confirms All Textbooks Will be $14.99–It’s Not Pilot Pricing

by on January 19th, 2012

Peter Kafka over at AllThingsD was able to interview McGraw-Hill CEO, Terry McGraw and ask him questions about the economics of selling $15 digital textbooks versus $75 paper copies.

What is the plan behind this massive discount and what makes them okay with it? The answer is volume in sales, notes McGraw. Normally the publisher sells $75 textbooks that schools keep for five years. The new model would have students purchasing $15 textbooks each year, and keep buying books each year:

So Terry McGraw figures that over five years he’ll generate the same total sales selling $15 e-books as he would selling $75 books. It’s not a total push, because in this model, Apple will take an undisclosed cut of sales — McGraw-Hill execs wouldn’t go into details, so let’s assume for now that it’s Apple’s standard 30 percent — but presumably McGraw-Hill can make some of that up by forgoing the costs of print and distribution.

Could these prices ever change? McGraw noted it’s ‘pilot pricing’ and the publishers have control over their future pricing; but when Kafka asked Apple executive Eddy Cue about this issue he had a totally different answer:

But when I posed the same question to Apple media boss Eddy Cue just now, I got a much different response. “This isn’t pilot pricing,” he said. “All of our books will be $14.99.”

I wonder what the cut works out to be for Apple with their role in distributing these textbooks. Kafka notes we could assume it would be the normal 30%, but we probably will never know. Either way, Apple was able to entice Pearson, McGraw-Hill, and Houghton Mifflin Harcourt to come on board.

This all sounds great–but when will the Textbooks category come to Canada?

**Want the BEST new iPad protection? Order your invisibleSHIELD by ZAGG, the strongest protection for your new iPad backed by a 30 day money back guarantee, lifetime replacement warranty, and FREE shipping! Use coupon code 'iphoneinca' for 20% off your purchase! Order today!**

Posted under: iPad News

  • http://www.iphoneincanada.ca/ Ex

    When it comes to Canada, it won’t be $15 (down from $75). Typical post-secondary texts run from about $95 to $250.

  • http://twitter.com/leafer01 Mr. X

    the used book stores must not be happy about this

  • Christopher Jones

    I agree, it most likely will be a bit more expensive, but not by much at all. All apps on the app store share the same price between Canada and the US, CDs are pretty comparative, movies are a bit different.

    I would guess the prices of Canadian iBook Textbooks to be somewhere between the $15 – 25 mark, but no more. I’m most likely thinking $20