Here is why iBooks 2 textbooks will be $15 apiece

Here is why iBooks 2 textbooks will be $15 apiece
By now you have probably heard that Apple is trying to change the way students learn by reinventing the textbook. And the company's attempt looks very promising indeed judging by our impression from iBooks 2. The interactive textbooks that will be sold through it deliver a rich, engaging experience despite their relatively low price of $15 apiece.

But have you wondered why publishers are willing to sell their textbooks at such a low price while a traditional one costs about $75? Well, the answer to that question is pretty simple actually. Here is how Terry McGraw, CEO of  McGraw-Hill, explains the pricing scheme: public schools purchase the textbooks at $75 each and keep them for 5 years on average. That brings a revenue of $15 per year for each textbook sold. However, textbooks sold through Apple's iBooks 2 will be sold directly to students. Regardless of whether the student pays for it out of their own pocket or use a voucher provided by the school, the textbook cannot be resold or given away to another student.

So technically, the publisher will be making that same $15 per book yearly revenue as with physical textbooks. Of course, a fraction of that money will go to Apple, but the publishers should be able to make that difference up by saving on printing costs and shipping. Having all that in mind, the $15 per textbook price is most likely to remain unchanged even though it was referred to as “pilot pricing” at yesterday's iBooks 2 announcement. Or at least when it comes to high school books as McGraw-Hill, like other publishers, has not announced whether it will distribute college textbooks through the iBooks 2 platform.

source: AllThingsD

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8 Comments

1. PimpStrong

Posts: 310; Member since: Jul 25, 2011

"publishers should be able to make that difference up by saving on printing costs and shipping" Yet another step towards doing away with the need for human resources. I'm not against this type of technological advancement but damn people are losing jobs. I may push my son into computer programming so he has a way better chance to succeed in the next 12 years.

2. nnaatthhaannx2

Posts: 820; Member since: Oct 19, 2011

yea technology kills jobs.... but it didn't save Jobs.

3. random1204

Posts: 28; Member since: May 26, 2010

I see what you did there ;)

4. PimpStrong

Posts: 310; Member since: Jul 25, 2011

That's deep s**t right there man.

5. remixfa

Posts: 14605; Member since: Dec 19, 2008

thats because the man behind the technology refused to get behind the technology that could have saved him.

6. Paden

Posts: 262; Member since: Jul 07, 2011

*contemplates life for 3 days straight*

7. AndroidTroll

Posts: 359; Member since: Mar 05, 2011

nice one. Although you could have said it simpler with, "technology kills jobs...even Steve Jobs."

8. Uzzelien

Posts: 131; Member since: Feb 22, 2011

Funny thing is I was reading another artical on this and schools don't pay as much on each text book as Apple claims they do. The really funny thing about the Apple book thing is that if you want it published on their store you can't have it published any other place. I can see the DOJ stepping into this and charging them with something.

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