iPad App Guides


250 Million Tablets By 2017

Statspotting is reporting that some 250 million tablets would be sold by 2017.

We spotted this today:

“Shipments of consumer media tablets like the Apple iPad are expected to approach 250 million units in 2017, a report from In-Stat suggests. While analysts at In-Stat see tablet adoption growing rapidly over the next six years, even a number as large as 250 million is conservative when considering the estimates other firms have recently reported. ”

Source: Statspotting


Half A Million iPad2s Sold On Day One

Statspotting is reporting that Apple has sold more than Half a million iPad2s this saturday.

“While we’ll wait for Apple’s official word on this one, we have some solid estimates from Piper Jaffray: 500,000 iPad2s have been sold on a single day (saturday).”


iPad Strategies for Publishers: Martin Langeveld Whitepaper

Martin Langeveld, a longtime newspaper executive who is now engaged in marketing, public relations and strategic planning,  has written a whitepaper on iPad strategies for Publishers.

Here is the part we liked the most:

  • We’re only at the beginning of understanding what’s possible on iPad et al. Early concepts like the Sports Illustrated demo are heavily rooted in print, lacking hyperlinks or social functionality. At some point, we should expect a new kind browser created especially for tablets, significantly different from standard browsers, that enables easy touch navigation to let people move around not only from page to page as they have been for 15 years, but more easily from topic to topic, person to person, place to place, idea to idea.
  • Indeed.


    Free ebooks: Do they result in higher print sales?

    We have written quite a bit about the economics of ebooks – here, here and here. In fact we had mentioned in one of our earlier posts:

    This analysis ONLY considers sales through Apple’s iBookstore. We’ll assume that sales elsewhere will have no impact on our calculations (obviously wrong, but for now, we can go ahead. we’ll cover this particular assumption in a separate post).

    Now, thanks to a news tip from Simon Owens at Bloggasm, we can do that. More or less.  In a paper titled “The Short-Term Influence of Free Digital Versions of Books on Print Sales”, doctoral student John Hilton III and Prof. David Wiley have done some good analysis based on BookScan sales data, and have established a clear correlation between free ebooks and print sales, atleast in the short term. Abstract below:

    Increasingly, authors and publishers are freely distributing their books electronically to increase the visibility of their work. A vital question for those with a commercial stake in selling books is, “What happens to book sales if digital versions are given away?” We used BookScan sales data for four categories of books (a total of 41 books) for which we could identify the date when the free digital versions of the books were made available to determine whether the free version affected print sales. We analyzed the data on book sales for the eight weeks before and after the free versions were available. Three of the four categories of books had increased sales after the free books were distributed. We discuss the implications and limitations of these results.
    Interesting conclusions, including: “As books increasingly become available in digital formats, the effects of free distribution may rapidly change. The explosive growth of Kindle and other e-book formats could dramatically impact how free distribution affects for-profit sales and even alter the relative importance of print sales. As the electronic publishing industry matures it will be increasingly important to research the effects of free distribution of electronic books.”
    Also read Simon’s thoughts on this. Definitely, interesting times ahead for the publishing industry.

    E-Book Pricing for iPad: The Math

    We had discussed the pricing of eBooks at length some time back – The economics behind Apple’s iBookstore. From a publisher’s point of view, the NYTimes makes a case today. Taking the case of a $12.99 eBook, the split they come up with is: $3.90 for Apple, $9.09 for the publisher. The author royalty is calculated as $2.27 to $3.25. This leaves $4.56 to $5.54 for the publisher (assuming 50 cents for digitising the book, and 78 cents in marketing costs).

    Source: Math of Publishing Meets the E-Book

    This comment summarizes the discussion very well:

    “If you want bookstores to stay alive, then you want to slow down this movement to e-books,” said Mike Shatzkin, chief executive of the Idea Logical Company, a consultant to publishers. “The simplest way to slow down e-books is not to make them too cheap.”

    Maybe, the publishers should learn from Apple, on how to manage product cannibalization.


    Steve’s Devices, in Numbers

    Some facts on Steve’s Devices.

    For the quarter ended Dec 31, 2009:

    1. Number of iPhones sold: 8.7 million
    2. Number of Macs sold: 3.4 million
    3. Number of iPods sold: 21 million.
    4. Apple Quarterly Revenue: $15.68 billion
    5. Apple Net Quarterly Profit: $3.38 billion
    6. Earnings – $3.67 per diluted share
    7. Cash generated in quarter: $5.8 billion


    Designing for the iPad: Presentation

    We found a very good presentation on designing for the iPad, by Evan Doll, a former Apple employee. Have Fun!


    Top 5 Reasons Adam Will Eat Apple .. or Apple’s iPad

    We are sure you heard of the Indian iPad Killer, ADAM from Notion Ink. Below, we list the top5 reasons why ADAM will eat Apple – Apple’s iPad, to be specific.
    (Watch this video, for a quick overview)

    1. The Pixel Qi transflective display – three modes – full color, black & white, and e-paper mode. auto-switch to power-saving mode (when used to do plain documentation stuff) and black and white (in sunlight)
    2. 180 degree Swivel Camera – You can take snaps of others plus of yourself (so you can do videoconferencing)
    3. Battery. 160 Hours if the backlit display is turned off, 16 hours otherwise. Way better than the iPad.
    4. Dual-Core ARM® CORTEX -A9 MPCORE™ Processor (And Android OS) => Full multitasking
    5. 3 USBs and expansion SD Slot

    And … bonus .. its just $327 !!


    The economics behind Apple’s iBookstore

    From the day of the iPad launch, we have been puzzled by Apple’s pricing decisions specific to the books listed on the iBookstore. One of our “must-do” posts has been this: To take a detailed look at the economics behind the iBookstore. Our analysis below.

    1. For our analysis, we have taken the case of a book thats released in hardcover as well as the iBookstore. We have assumed the list prices to be: $26 for the hardcover, and $14.99 for the eBook on iBookstore on the iPad.

    2. We have assumed that the new “agency model” will be used for all books sold on the iBookstore for split of revenue between Apple and the Publishers.

    Note:  The “agency” model is based on the idea that the publisher is selling to the consumer and, therefore, setting the price, and any “agent”, which would usually be a retailer but wouldn’t have to be, that creates that sale would get a “commission” from the publisher for doing so.

    The wholesale model, on the other hand, is when the publisher “sells” the book to an intermediary (i.e. Amazon, Borders, B&N) based on the publisher’s established retail price and a discount schedule, typically around 50 percent. Then the purchaser resells that e-book at whatever price they like. (Source: ZDNet)

    (Pls note that the most important point about the agency model, is who “owns” the sales data – Apple or the Publisher. This is not very clear at this point. As you can imagine, this sales data is the core strength of Amazon at this point)

    3. We have not considered any revenue/profit dilution due to piracy, since we assume that the Books in iBookstore would be ‘digitally locked’

    4. Royalties used are as follows: approx. 6% is the royalty paid for a paperback, and for eBooks, royalties might be on the way up, but we dont know if this will be a trend. We have taken a 20% royalty on “net proceeds” – basically 20 percent of whatever the publisher receives from the retailer (in our case, this would be 70 percent of the list price on the iBookstore).

    5. We have only considered the royalties for the author and not the “advance” because, by definition, this is an advance on future royalties.

    6.  As expected, we’ll start everything from the list price. (For now, we’ll assume that the new model based on “actual amount received” by the publisher will not be used, and that royalties will continue to be a percentage of the list price).

    7. This analysis ONLY considers sales through Apple’s iBookstore. We’ll assume that sales elsewhere will have no impact on our calculations (obviously wrong, but for now, we can go ahead. we’ll cover this particular assumption in a separate post).

    Analysis Summary: The $14.99 price for eBook: Who gets what?

    Economics behind iBookStore

    Economics behind iBookStore

    References:

    We have used multiple sources of public information for this piece. The most significant ones are listed below.

    1. Advances And Royalties: The Business End Of Writing – Susan B Pfeffer
    2. Apple pitching its agency model to book publishers - ZDNet


    What is Amazon’s Core Asset?

    Consumer data related to Book sales is what makes Amazon, well, Amazon. Mining that data has a direct impact on what Amazon does on a daily basis. Well, for the iPad, Apple apparently wants to own that data and not share anything other than sales volume with Publishers. Now what would drive the Publishers’ marketing efforts, in the absence of such data?

    But the good thing is, unlike the early days of Amazon when it was collecting all that data, today, everyone understands the importance of data. Hell, publishers would take a lower percentage cut of the revenue in exchange for that data, on the iBookstore. Well, Apple is not going to give away that data, just like that. Not any time soon.