News by Dan Seifert on Monday July 25, 2011.
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Just as we had thought might happen earlier today, Amazon has gone ahead and updated its iOS Kindle app to comply with Apple's in-app purchase rules. Amazon follows Barnes & Noble and Kobo in removing access to in-app e-book purchases.
Version 2.8 of the Kindle app brings two major changes. The first is that readers can now subscribe to magazines and newspapers directly in the app. Amazon will have to give Apple 30 percent of the proceeds from any subscription that a users signs up for within the app. The second change removes the ability to buy e-books from within the app, forcing users to buy new books online and sync them to their iOS devices.
It is interesting to note the areas that Amazon decided to play ball with Apple, and where it rejected Apple's new system. Magazine and newspaper subscriptions carry a higher profit margin, so Amazon is apparently comfortable with giving some of that to Apple. E-books, on the other hand, have much lower profit margins, so Amazon went ahead and removed the option to purchase them from its app, cutting Apple out of the profits. As we noted earlier today, the user is the one who suffers the most, as it is much less convenient to purchase an e-book outside of the app. Chances are authors and publishers will see a decline in sales from iOS users as well, so the whole system takes a hit.[iTunes App Store via 9to5Mac]
Dan is MobileBurn.com's Editor-in-Chief. Based in Poughkeepsie in New York, Dan can be found on Twitter as @DCSeifert.