Apple Claims 20% of U.S. E-Book Market, Double Previous Estimates

Publishers Weekly reports (via paidContent) that testimony from Apple executive Keith Moerer in the ongoing e-book price fixing trial has revealed that Apple holds approximately 20% of the e-book market in the United States, roughly double many of the previous estimates made by third parties.

The government also focused on the relative success of the iBookstore asking Moerer what marketshare the store held in the months after launch (about 20% Moerer said) and what its marketshare was after several years of operation and adding Random House in 2011 (also about 20%).

ibookstore_iphone_ipad_mac
Beyond the market share claim, Moerer pointed to strong growth of the iBookstore in vigorously challenging the U.S. government's assertion that Apple's e-book effort has been a failure.

The government called the iBookstore “a failure,” and charged that “Apple pricing was unfair to consumers,” and that “Apple sold fewer books because of the higher price caps.” Moerer challenged that characterization, “I disagree. E-book sales grew 100% last year at the iBookstore and it had over 100 million customers.” The government countered that “when you drop prices you sell more books,” and Moerer said, “sometimes, yes.”

But the government bluntly said, “Apple forgot to focus on customers that’s why the iBookstore is a failure.” Moerer: “that’s not true.”

Testimony in the case is now in its second week, with Apple senior vice president for Internet Software and Services Eddy Cue scheduled to take the stand tomorrow.

Top Rated Comments

(View all)
Avatar
96 months ago

WTF? It is a failure because the government claims it is a failure? That's it? Are these guys just naturally stupid or do they have to go to special training courses?


It's incredibly ironic and ludicrous that the US Government is lecturing Apple on wooing and taking care of customers.
Score: 8 Votes (Like | Disagree)
Avatar
96 months ago

If Apple has 20%, I'm curious who makes up the other 80% (?)


ummm....Amazon.
Score: 8 Votes (Like | Disagree)
Avatar
96 months ago

I find this case incredibly interesting in as far as that the government is going after Apple for the price of ebooks yet oil companies continue to have free reign to price gouge at every drop of the hat.

I think Apple should get into the oil business and launch a string of Apple gas stations with gas priced at about $10/gallon. What is a gouge by existing oil companies will probably be spun into comments like "but my car is snappier when I use Apple gas" or "I've noticed a significant improvement in how my car runs with Apple gas" and probably some "Die, Exxon Die", etc. ;)

Then, a few months later, out comes Samsung Oil with bigger screen gas pumps at about 2/3 of the price of Apple-branded gas. And of course, that will be substantially inferior gas even if Samsung is the underlying supplier to themselves and Apple's gas stations.

All ;)
Score: 7 Votes (Like | Disagree)
Avatar
96 months ago

I like low prices as much as the next guy, but what you need to realize about this case is that Apple's behavior (legal or not) disrupted a market where Amazon was taking a loss on every book sold to drown out competition, intending to monopolize the market and then charge whatever they damn well pleased once their dominance was permanently established. By forcing Amazon to make a profit, they actually save the DOJ from having to step in with an antitrust suit against them in a few years time.


Wrong, Amazon was making a profit with their ebook division, they only sold at a loss some ebooks
Score: 6 Votes (Like | Disagree)
Avatar
96 months ago

But the government bluntly said, "Apple forgot to focus on customers that's why the iBookstore is a failure." Moerer: "that's not true."

WTF? It is a failure because the government claims it is a failure? That's it? Are these guys just naturally stupid or do they have to go to special training courses?
Score: 6 Votes (Like | Disagree)
Avatar
96 months ago

This is very good for authors. Amazon is using the Wholesale Model to artificially run it's prices down, well below cost, running it's competition out of business. The agency model prevents retailers from using their near unlimited resources to run the competition out of business.


Amazon pays the publisher FULL price when they purchase them. They chose to offer some books at a loss for short periods of time.

Apple is on trial here. Not Amazon.
Score: 5 Votes (Like | Disagree)

Top Stories

iPhone 12 Pro in Graphite and iPhone 12 in Blue Shown Off in Unboxing Videos

Monday October 19, 2020 8:20 am PDT by
While the iPhone 12 Pro does not launch until Friday, we now have an early unboxing video of the device courtesy of Twitter account DuanRui, providing a closer look at the shiny new flat-edge design and sleek Graphite color option. Ben Geskin re-uploaded the unboxing video to YouTube, which we've embedded below: Geskin has also uploaded an unboxing video of the iPhone 12 in Blue: ...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...

Kuo: iPhone 12 Pro Demand Higher Than Expected

Sunday October 18, 2020 10:39 pm PDT by
TF International Securities analyst Ming-Chi Kuo released a research note this morning detailing what he's seen with the volume of iPhone 12 and iPhone 12 Pro pre-orders in the first weekend of sales. Kuo had previously indicated that Apple's estimated shipment allocations for the new iPhone models placed the iPhone 12 at the top with 40-45% of inventory allocation (up from 15-20%). However, ...

Apple Releases iPadOS and iOS 14.1 With Multiple Bug Fixes Ahead of iPhone 12 Launch

Tuesday October 20, 2020 10:06 am PDT by
Apple today released iOS and iPadOS 14.1, the first major updates to the iOS and iPadOS 14 operating system updates that were released in September. iOS and iPadOS 14.1 come a week after Apple released the golden master versions of the updates to developers. The iOS 14.1 update can be downloaded for free and it is available on all eligible devices over-the-air in the Settings app. To access...

Hands-On With Apple's MagSafe Charger for iPhone 12

Monday October 19, 2020 11:54 am PDT by
Alongside the new iPhone 12 models, Apple introduced a MagSafe charger that attaches to the back of the iPhones using magnets embedded both in the charger and in the iPhone. It allows for speedier charging and paves the way for a portless iPhone in the future. MagSafe chargers are shipping out and are in some Apple retail locations now, and we picked one up to check it out. Subscribe to the ...

Watch: iPhone 12 and iPhone 12 Pro Unboxing Videos and First Impressions

Tuesday October 20, 2020 6:05 am PDT by
Apple's embargo has lifted for iPhone 12 and iPhone 12 Pro reviews. In addition to our detailed review roundups for each device, we've rounded up over a dozen unboxing videos and first impressions below. iPhone 12 in Blue on left and iPhone 12 Pro in Pacific Blue on right via Engadget Key new features of the iPhone 12 and iPhone 12 Pro include a flat-edge design, 5G support, a much faster A14 ...

Some Apple Watch SE Owners Experiencing Issues With Overheating [Updated]

Monday October 19, 2020 11:38 am PDT by
There may be an issue with the new Apple Watch SE, which some users have found is overheating after a few hours of usage. Several Apple Watch SE owners in South Korea have run into problems, as noted in a Reddit post chronicling the complaints. There have been six reports from Apple Watch SE owners in South Korea who have had their Apple Watches get hot and malfunction, with a yellow spot...

Gold Version of iPhone 12 Pro Apparently Has a More Fingerprint Resistant Stainless Steel Frame

Tuesday October 20, 2020 11:56 am PDT by
iPhone 12 Pro reviews hit the web today, and one of the more interesting tidbits came from TechCrunch's Matthew Panzarino, who revealed that the Gold version of the device apparently has a more fingerprint resistant coating applied to the stainless steel frame. From his review:Most of the iPhone 12 Pro finishes still use a physical vapor deposition process for edge coating. But the new gold...

iPhone 12 Pro Max Has Smaller 3,687 mAh Battery According to Regulatory Filing

Tuesday October 20, 2020 8:48 pm PDT by
Apple's new iPhone 12 Pro Max is equipped with a 3,687 mAh battery, which is around 7% less capacity than the 3,969 mAh battery in the iPhone 11 Pro Max, according to a regulatory filing published by TENAA, the Chinese equivalent of the FCC. The regulatory filing, spotted by MacRumors, also lists the iPhone 12 Pro Max with 6GB of RAM as seen in benchmark results last week. Apple has filed ...

Hands-On With Apple's iPhone 12 and 12 Pro MagSafe Cases

Tuesday October 20, 2020 1:33 pm PDT by
Apple's iPhone 12 and 12 Pro are launching this Friday, and ahead of that release date, Apple is shipping out various accessories like the MagSafe charger and MagSafe cases. Yesterday we took a look at the MagSafe charger, and today our MagSafe case came in the mail, so we thought we'd take another look at the charger to see how it works with the case and just how strong the case magnets are. S ...