Apple iBookstore prices to be lower than expected?

While publishers have cheered Apple’s decision to allow e-book pricing as high as $14.99, that number may act as more of a price ceiling than a general guideline, according to a new report. Citing at least three people with knowledge of the discussions between Apple and major book publishers, the New York Times reports that Apple inserted provisions in the agreements requiring publishers to discount prices on best sellers, possibly to as low as the $9.99 pricing seen on Amazon’s Kindle store. The report also claims that Apple wanted e-book prices to reflect the hardcover price in cases where the hardcover edition was sold for less than the standard $26. During its iBooks and iBookstore announcement, Apple CEO Steve Jobs revealed the company had signed agreements with five of the six largest book publishers—Penguin, Simon & Schuster, HarperCollins, Macmillan, and Hachette book group. According to the report, Apple will take 30 percent of each sale, with the remaining 70 percent going to the the publisher and author; notably, some books shown during the iBookstore demo were available for as little as $4.99. Apple is expected to launch its iBooks app and iBookstore alongside the iPad in late march.