Steve Haber Speaks: Apple’s Rejection, Sony Reader Sales, the Future of E-Ink

PW: "In a wide ranging conversation, Sony Reader president Steve Haber said the Sony Readers have sold millions of units; that the redesigned Touch and Pocket edition units have sold out completely and he maintained that Apple changed the rules on them when it rejected the Sony iPad/iPhone app. Haber outlined a growing international demand for Sony Readers, the launch of a library device lending program and emphasized that not only are e-ink devices 'not doomed' but “set to replace the traditional book."

Apple: Nothing Has Changed. Except For This One Thing ...

Jason Kincaid, Techcrunch:

Last night the New York Times published a report stating that Sony’s E-Reader application had been rejected from Apple’s App Store, because it used a transaction system other than Apple’s In-App Payments. What’s worse, Apple was apparently blocking applications from downloading content that had been purchased outside the application — which could spell bad news for Amazon’s Kindle platform.

Now an Apple spokesperson has given us this statement:

“We have not changed our developer terms or guidelines. We are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase.”

Huh?

At first glance it looks like the NYT article was simply mistaken — Apple is saying that its terms and guidelines are the same. Except now it’s apparently choosing a different way to actually enforce those terms, which makes the report seem accurate after all.

The most relevant passage from Apple’s developer guidelines — which were only published in September, mind you — appears to be section 11.2, which states:

Apps utilizing a system other than the In App Purchase API (IAP) to purchase content, functionality, or services in an app will be rejected.

Now, Amazon’s Kindle app doesn’t conduct its purchases through the app itself — users are instead kicked off to a browser where they actually buy their books, and that content is then synced to the Kindle app. Apple’s rule is worded vaguely enough that it can claim this workaround is in violation of the guidelines. But it obviously hasn’t been enforced like this before now, so the notion that nothing has changed is clearly false.

It also doesn’t make a whole lot of sense from the user’s perspective. Apple is effectively telling developers that they can offer two purchase flows for content: one through the browser, and another via in-app purchases. Apple is obviously assuming people will prefer the latter because it’s quicker and simply requires the user to enter their Apple password. But developers have an incentive to push users toward the browser flow so that they don’t have to give Apple a 30% cut of each purchase. Which could mean we start seeing some bizarre checkout flows that are anything but user friendly.

Apple denies claim that Sony Reader, Kindle in danger on iOS App Store

AppleInsider:

... Wall Street Journal blogger John Paczkowski has reported official comment from Apple spokesperson Trudy Miller, who said the company has not "changed our developer terms or guidelines," while noting that "we are now requiring that if an app offers customers the ability to purchase books outside of the app, that the same option is also available to customers from within the app with in-app purchase."

That would be the reverse of the situation reported by the Times, and also makes more sense. Pulling popular titles such as Kindle, and similar content-access apps including Dropbox, Hulu , Netflix and Pandora, would do little to benefit Apple.

That would be the reverse of the situation reported by the Times, and also makes more sense. Pulling popular titles such as Kindle, and similar content-access apps including Dropbox, Hulu+, Netflix and Pandora, would do little to benefit Apple.

In-app option required, but not exclusive

Instead, as Paczkowski explained, "Apple wants its cut on sales enabled by its iOS devices, it has an established guideline that allows it to take it and that’s what it’s doing.

"Developers are still free to send customers to their own Web stores, but they must also offer them the option of purchasing content within their apps themselves, and they must route those sales through Apple which will then take its percentage."

This harmonizes with Apple's previous policy, enabling users to buy through iTunes (and allowing Apple to earn a cut for facilitating the convenience) without forcing all content to be purchased within iTunes. For example, Amazon can sell Kindle-DRM ebooks directly from its website or through its own Kindle device, and iOS Kindle app users can sync those purchases to their iPhone, iPod touch, or iPad. ...

Apple's Sony app rejection poses serious questions

eBook Magazine:

... It’s a brave man who second guesses Apple but I can’t see them suddenly pulling the rug from under the likes of Kindle – the PR fallout would be disastrous for them.

On the other hand, if Apple were to move to make iBooks the only/default ebook app now’s probably the best time to do it. The iPad has sold fantastically well but its successor – now probably only weeks away from launch – is likely to sell even better.

Cutting third party ebook stores adrift before a new wave of iPad owners take delivery of their devices compartmentalizes the fall out.

As is always the case when Apple extends the higher of the wall around its garden, some speculate about legal action any disgruntled third parties might take.

The problem here is that the biggest potential loser if Apple were to kick ot third party ebook apps is Kindle, yet could Amazon really ask any court to rule against a closed, single retailer ebook platform without creating an instant case for opening up the Kindle to other retailers? ...

Apple clips publishers' wings

A strategic miscalculation on Apple's part, especially if the policy extends to the Kindle app. The Register: "Apple is cracking down on applications that provide access to paid content, rejecting anything that looks as though its trying to bypass handing over 30 per cent to Cupertino. Apple gets a 30 per cent cut of anything purchased on the iPhone, or iPad, but iOS applications such as Amazon's Kindle reader and some newspaper clients provide access to content that was paid for elsewhere: something that Apple is apparently no longer going to tolerate. Sony is one of those affected, the New York Times reports, having had its Sony Reader software rejected by Apple on the basis that customers can buy a book on one device and view it on another. Apple has no argument with that concept, as long as both devices are running iOS and under the complete control of Messrs Jobs & Co, but if you buy a book on a desktop computer and then read it on your iPhone then Apple won't get its pound of flesh – and that's not acceptable. ... "

Sony Unveils Sony Reader for Android

AppScout: " ... The app gives you access to your Sony eBook Store account, and allows you to download books you've previously purchased right to your Android phone. In addition to giving you access to your account, the app is also an eBook reader, and allows you to open your downloaded eBooks and read them the same way you would on a Sony device. ... "

Sony Reader eBook app Hits Android Market

mobiputing: "Sony has launched a mobile eBook Reader app for Google Android. It’s now available for download from the Android Market. The app supports Android 2.2 and up. An iOS version is expected soon. ... "

The Sony Reader is Doomed

The Digital Reader: "For 3 years now, Sony have consistently been a step behind everyone else. In 2008, they released the PRS-700, an e-reader that still causes people to wince at the sight of the touchscreen (no Wifi). In 2009 they released the PRS-300 and PRS- 600 (still no Wifi) and then followed it up with the PRS-900 in January (3G but still no Wifi). I think the PRS-900 marked the beginning of the end for Sony. B&N shipped the Nook in November, and in terms of innovation that shifted Sony from 2nd place to 3rd place in the US market. And in 2010 it has only gotten worse. Pocketbook released the Wifi equipped PB-302 e-reader in February, It wasn’t a great e-reader, but it still did something no Sony Reader could do.And then the Kobo Wifi got Sony kicked out of Wal-mart (5th place now). ..."

Once Tossed Aside, a Homecoming for Sony's E-Reader

WSJ: "Sony Corp.’s digital e-book reader, which will go on sale in Japan on Dec. 10, is the rare example of a consumer product being reintroduced in Japan after an initial flop at home and then finding success abroad. The homecoming for a Sony e-reader also maps out the convoluted twists and turns a product can take through the electronics conglomerate’s labyrinth of markets and business divisions. ... "

Sony Expanding Reader Store eBooks to iPhone and Android

FierceMobileContent: "Sony Corporation will extend its Reader Store ebook effort to iOS and Android smartphones beginning next month. A teaser page posted on the Reader Store website confirms the move--according to Sony, consumers will be able to access digital titles purchased via the Reader Store across iPhone and Android handsets as well as PCs and Sony's own touchscreen Reader devices. In addition to new releases and New York Times bestsellers, Reader Store boasts more than a million free public domain titles from Google Books as well as links to borrow ebooks from public libraries. ... "

Sony Reader Coming to Android in December

Android Community: "Nothing revolutionary here but another option for eBooks is always welcome. You can make bookmarks, notes and adjust font size as you read and new books will be purchased through the Reader Store. Looks like Amazon, Barnes and Noble, Borders and the countless other eReader apps just got another source of competition."

eReader Color vs. Black & White vs. ...

Nick Bilton, NYTimes.com:

Although it is still unclear if the color version will be a hit, William Lynch, chief executive of Barnes & Noble, said at a news conference Tuesday that the company had sold over 1 million Nooks since the device was introduced last year.

That number seems impressive until you compare it to other devices on the market that have logos of a little apple on the back. The Apple iPad, which costs $500 and up, is clearly not just an e-reader, but a computer, e-reader and Web device all rolled into one, and it has fared extremely well with consumers so far. Apple said in its latest earnings report that it had sold over 7 million iPads in six months. ...

Phil Lubell, vice president of digital reading at Sony Electronics, said in an e-mail that he believed consumers preferred “a crisp, glare-free e-ink screen that provides the most immersive reading experience possible.”

“Barnes & Noble’s new LCD tablet cannot be considered in the same category as a dedicated reading device,” Mr. Lubell said. “We’ve heard overwhelmingly from book lovers interested in e-readers that electronic paper is their No. 1 reason for choosing an electronic reading device.” (Of course, Barnes & Noble’s chief said during his news conference that customers had “asked for a color e-reader.”)

Although Sony declined to offer the exact number of e-readers it had sold to date, a Sony representative said the company had “passed the million-unit milestone a while ago.”

And of course there’s one more e-reader: the Amazon Kindle. Although not the first to enter the marketplace, the Kindle has definitely made one of the largest splashes.

An Amazon representative declined to comment about the company’s future plans for the Kindle, or the number of units the company has sold to date. Analysts believe Amazon has sold between 3 million and 6 million units since the first Kindle was introduced in 2007.

Don’t expect a color version of the scrappy Kindle anytime soon. Jeffrey P. Bezos, Amazon’s chief executive, has repeatedly said that color is “not ready for prime time” when it comes to next-generation e-readers. Mr. Bezos has also said in the past that color Kindles are “multiple years” away.

Holding out for a better color technology could be beneficial for Amazon and Sony, or it could completely backfire. As consumers continue to read more content on color devices that can handle video and deliver a more magazine-like experience, dedicated black-and-white readers could quickly become a niche product. ...

Kindle Marketing Attack Against iPad is Misguided

PCWorld Business Center: "The new Kindle TV ads poke fun at the iPad for the glare that occurs when trying to use the tablet as an e-reader outdoors in daylight conditions. The backlit LCD display is a handicap when trying to view the display in direct sunlight--especially compared with the E-Ink display of the Amazon Kindle. However, the ad is slightly misleading in that the iPad is a better reading platform in a variety of scenarios where the Kindle is weak, and is misguided in that the iPad is not really Kindle's competition. While Apple is focusing on competing tablets like the Samsung Galaxy Tab, Amazon should be focused on its challengers--the Barnes and Noble Nook, and the Sony Reader being the primary competition."

Sony’s New Readers: Price & Connectivity are Problems

Technologizer: "While Sony has cut prices compared to the ones its last-generation Readers started at, they’re still high: The Daily Edition is $299, the Touch Edition is $229, and the Pocket Edition is $179. True, the Readers have some of the nicest industrial designs of any e-readers, with aluminum cases rather than plasticky shells on the Kindle and Nook. Some folks might be willing to pay a premium for touch screens. And the Daily Edition’s 7″ screen is a plus compared to the 6″ Kindle and Nook. But the Touch and Pocket Editions’ reliance on USB transfers is anachronistic in an era in which the 3G Kindle and Nook are $189 and $199 respectively and the Wi-Fi-only versions are $139 and $149. In order to get a Reader with a built-in wireless bookstore you need to spend more than twice the price of the Wi-Fi Kindle."

Clash of eBook Titans Collateral Damage on Google Editions, Sony, Others

 Here are two particularly salient observations from Nicholas Kolakowski's current piece in eWeek:

... the longer Google waits to roll out Google Editions (and the longer it neglects to provide details about how the service will work, in order to build the all-important buzz) the harder its eventual battle against Amazon, Barnes & Noble, and Apple, all of which have been moving aggressively to draw readers to their respective platforms. In that context, Google’s chances of breaking off a substantial portion of the e-book market seem dimmer and dimmer by the week

And this:

... if Sony plans on using Android as the operating system for its future e-readers, it could be tacit acknowledgment that none of its previous steps have been enough; through Android, Sony could conceivably add software features equivalent to those of the ever-more-advanced Kindle and Nook

That would place Sony smack-dab in the middle of what’s become an extraordinarily competitive space, locking jaws with not only Amazon, Barnes & Noble, and the Apple iPad, but also the upcoming Android-based tablet PCs. If Sony were willing to spend millions of dollars to aggressively assert itself in that position, it could translate into a market-share advantage—but Sony seems reluctant to grow fangs in that regard, with anemic e-reader marketing and a follower’s mentality when it comes to pricing and features.

Rumor: Sony Prepping PRS-350 & PRS-650 Readers - May Feature More Internal Storage, Wi-Fi & 3G

TFTS – Technology, Gadgets & Curiosities: "Both the PRS-350 and the PRS-650 are said to be 'extremely thin' coming in at under 10mm in thickness. As for the display, the PRS-350 will be 5 inches and the PRS-650 will be 6 inches, both of which should also come with faster page turns and improved contrast. In terms of storage, they are expected to see an increase over previous Reader devices and could go as high as 2GB of internal storage, though it was unclear if that was for both models or just the higher end PRS-650. Furthermore, the PRS-650 is also expected to have Wi-Fi and possibly 3G connectivity while the PRS-350 remains wireless free. Both models should also arrive sporting an updated Sony Reader user interface with a new home screen and note taking software."

New Android-based Sony Readers?

Mobility Site: "The way I see it, despite a lot of tough talk about refusing to drop the price of their ebook readers further so as to not compromise their quality, the powers that be at Sony have realized there may not be room in the Ebook Reader market for more than three players…and right now that would be Amazon, Apple and Barnes & Noble. Sony and their Reader line would be fourth right now…and that may not be good enough. They need to do something to find something to make their devices unusual or to at least add value. Now, if they made the Sony Touch Reader run Android 2.2 or 3 like a full fledged tablet….that could do it."

Sony Reader Sales for 2nd Quarter Triple Over Last Year

Publishers Weekly: "Kindle has reached its tipping point, and now the Sony Reader has, too. Earlier this year the 10 millionth book was downloaded from the Sony Reader Store, Phil Lubell, v-p of digital reading at Sony Electronics said today. 'We are well on our way to doubling this number by year's end,' he said. Since launching its digital reading business, the company has seen 'steady growth, month over month, year over year. In fact, device sales for the second quarter of this year are about triple what they were for last year.'" This is roughly half the percentage increase Amazon claims (tripling over two quarters), and of course must be well under Amazon's actual unit numbers.

SONY Lowers Prices on eReaders

From Mobility Site:

They may be a day late and a dollar short, but Sony has finally waded into the ebook reader price war. They have lowered the recommended prices for all three of their ebook readers. The Pocket Edition is dropped twenty bucks to $149, the Touch Edition drops thirty to $169, and the 3G Daily Edition lowers its price by 50 dollars to end up at $299. ...

New Sony Patent: solar charged e-reader/laptop built from two touchscreens

I missed this, which popped more than a week ago. From VentureBeat:

A patent application filed by Sony depicts a folding two-screen device that can be held like a book, or typed on like a laptop.

The patent paperwork explicitly states that there are “first and second touchscreens,” that “the image of a keyboard” could appear on one screen, and that “electronic book files” would be storable. The device would be “connectable to a solar charger.” ...

Sony’s device seems a more direct attempt to create an alternative to low-cost netbook laptops, one that doubles as a book-like reader. The obvious two benefits are a lower overall price and only one gadget to carry instead of two.

The concept of a laptop with a touchscreen keyboard has a novelty appeal, but it also says something about the intended market: Unlike the road warriors of the past who carried top-of-the-line laptops for constant typing, there’s a new demographic of mobile content consumers and producers that sticks to short messages. They don’t need a ThinkPad-grade keyboard to type on. Hopefully for Sony, they’ll be able to build a sexy-looking device that can serve as a status symbol like the company’s early Vaio laptops. ...