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The States Five Big Pubilishers Join Hands to Require Amazon to Raise the Price of E-book

The executive director of American Authors Guid, Paul Aiken atates that after giving consent to publisher Macmillan for his independent pricing for Kindle e-book, Amazon again carries out cooperation with the other five publishers on new contract terms. Top 10 Gifts for Mother's Day It is expected to offer more pricing rights and shares for those publishers.4 Objective Comments About Backpack bags

Amazon states this week that it agrees with McMilan on selling Kindle e-book at a maximum price of $14.99. Amazon used to price Kind E-books at 9.99 US dollars, hoping to attract more Kindle users by low price. Collins Stewart with an investment bank contends that Amazon`s concession to Macmillan makes Kindle more fragile to attack from its rivals. According to Aiken, at least 5 publishers can sign the agreement with Amazon. Other publishers will also continually follow up, for it's not responsible if not follow up. Amazon said this week that it didn`t hope all publishers to do the same as Macmillan. But its spokesman declined further comment. Comment isn`t available from Pearson PLC-affiliated Penguin, Bertelsmann-affiliated Random House, News Corporation-affiliated HarperCollins, CBS-affiliated Simon & Schuster, Hachette Book Group and Macmillan either. The debut of Apple`s iPad tablet PC last Wednesday was followed by the agreement between Amazon and Macmillan. iPad put in place a brand new E-book platform for publishers. Apple will also set up its own digital bookstore, which is similar to that of iPhone online store.

It is revealed by certain well-informed that Apple will allow the publishers to make price independently and provide 70% sharing for them Aiken says it`s a good news to publishers who used to worry that Amazon attempts to keep low of price in advantage of dominant role of Kindle in the market. He also states that Amazon now buys books from publishers at the price of $12 to $13.Since the price of the bestsellers of Kindle is only $9.99, Amazon is in fact selling at a loss. That's why publishers think Amazon will request to have lower wholesale price. He said, "No one would think that Amazon would always sell e-book at a loss." Imran Khan, an analyst with Morgan Stanley holds that the price hike of Macmillan isn`t likely to depress demand or deal a blow to Amazon`s sales. 30% reduction of e-book sales volume can lead to less income for Amazon. According to Khan, bestsellers will not be the principal channel for Amazon to make profit. Through recommendation system, Amazon can make profit by selling old books or less-popular ones. Sales of E-books and Kindle amount to less than 3% of total revenue of Amazon.

Kaufman BrosKaufman Bros and analysis Aaron Kessler from investment bank think that high sales price will probably do favor to small scale retailers, for they can not compete with Amazon. Amazon`s ability in squeezing price is due to gigantic sales which dilute the cost. Therefore, its advantage will be deprived if it can`t promote low-price E-books as before Last weekend, Amazon stoped to sell all books from McMillan to express "serious protest". McMillan once threatened Amazon to put off the publication of e-book if it didn't raise the price. The agreement will imitate the one signed by Apple and publishers. A source anonymity declares that in iPad, publishers can set the price for e-books within certain limit. The sales price of most bestsellers is $12.99.

Colin Smith, spokesman of Apple says: We have not announced the price of iBook and we will provide more detailed information on late March before iPad enters the market. On January 20th, Amazon declared a new e-book plan, providing 70% sharing for authos and publishers. According to the agreement, the sales price of e-book can not exceed $9.99 and it must be at least 20% lower than printing books. But Apple offers publishers a more ease pricing policy. Khan said, [even if all publishers raise the book prices, we don`t think it will be cast a negative impact on Amazon. Besides, uncertainties still exist about how things will turn out to be."