Report: Apple To Make Media Announcements

Applebooks

Apple is planning an announcement to the press later this month that probably involves its electronic book publishing. Kara Swisher at All Things D broke the news this week that an upcoming New York event will focus on “media-related” topics. She says the announcement will involve Apple SVP of Internet Software and Services Eddy Cue, who oversees the iTunes, App and iBook stores. Cue also oversees the iAd initiative, so it is also possible that the rollout will include advertising. Let the customary speculation commence.

Several analysts assume that Apple is preparing to more directly challenge the ebook success Amazon has had on its Kindle platform and now on its Kindle Fire. By some estimates, Amazon succeeded in selling up to 5 million Fires this holiday season, leading Morgan Keegan analyst Tavis McCourt to reduce his estimate of iPad shipments for this quarter from 16 million to 13 million.

TechCrunch is reporting that the event in later January will not involve any hardware announcements and will target the publishing industry itself. Fox News reporter Clayton Morris cites sources involved in the event claiming that it will address the iTunes U part of the iTunes business, which hosts education content -- mostly videos and audio lectures. Morris says the announcements were originally scheduled for the fall, but had to be postponed.

While Apple still holds a commanding lead in the tablet wars, book publishing remains one of its weaker links. The iBooks app received a modest update in recent months, but generally books media are not promoted heavily at iTunes or on the iOS devices. Amazon is able to offer its Fire tablet at a low $199 price largely because the retailer expects to make its profit on digital book sales. Arguably, Apple’s model has been the inverse -– using content as a means for selling more hardware at premium prices. 

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