Apple textbook domination? Not so fast.

Fortune Magazine – John Patrick Pullen

20-Jan

Genevieve Shore, chief information officer and director of digital strategy at London-based publishing giant Pearson (PSO) says iBooks and textbooks are not a like-for-like comparison because the process behind making these two products are very different. But the math does shake out quite neatly. “We’re happy with the economics,” says Shore, “otherwise we wouldn’t be doing it.” According to Apple, iBooks will cost $14.99 or less, while textbooks prices can range anywhere from $65 to $120. In K-12 publishing, the reason for the high prices (aside from costly production values like reinforced bindings, hard covers, and four-color printing) is that books are typically bought to be used over a seven-year period, so the cost is amortized over that period of time. With iBooks, says Shore, the textbooks will only be used for one year, and can then either be renewed or replaced with a new purchase. Despite the price change, Shore thinks the numbers will add up in the end. “It’s all going to work out to adoption, usage, and engagement — how effective teachers find these learning materials to be in this form,” she says.

http://tech.fortune.cnn.com/2012/01/20/apple-textbook-domination-not-so-fast/