Originally published: February 23, 2011
Last updated: February 23, 2011 - 3:35pm
The button circled at right on Amazon's popular Kindle app for the iPhone will have to be removed if the company wants to continue doing business in Apple's App Store. That's because it takes customers out of the store to Amazon's website, where readers have been buying books for nearly two years. If Amazon doesn't decide to pull Kindle from the App Store -- a big if -- how much would the new rules cost it? Team Merrill has done some back-of-the-envelope calculations: "Our Kindle model assumes 2011 Kindle media sales of $1.6bn, up from $500mn in 2010. Assuming Amazon drives 5-10% of its Kindle media sales through the current Apple app link (a rough assumption at best), then approximately $80-160mn in sales could be negatively impacted by this policy."
- Canaccord: iPhone smartphone share to grow 42% this quarter
- Analyst: Amazon is likely losing $50 per Kindle Fire
- What's the Kindle Worth to Amazon?
- Amazon to Sell E-Books for Apple Devices
- Amazon Amps Up Apps Rivalry
- 63% of iPhones were activated outside the US last quarter
- Apple: 'From a tech titan into a dinosaur' -- but not for a year
- iPhone 5 and iPhone 4S each outsold the Galaxy S3 in Q4
- Report: Google captured 51% of app downloads; Apple took 74% of the revenue
- Apple Courts Publishers, While Kindle Adds Apps
- Morgan Stanley: What iPhone really needs is more carriers
- Publishers to Get More Revenue Share From Amazon's Kindle
- With 8.7% market share, Apple has 75% of cell phone profits
- Does AT&T turn into a pumpkin in June?
- Apple Moves to Tighten Control of App Store