So you think it's ok for Amazon to make a profit from the IPad without paying Apple one penny from the distribution of electronic media? If Apple offered an iBook reader for Kindle, and sold their books royalty free through Amazon.com would you feel the same way?
-t
I would answer "yes" to both questions. Also, Apple is not a publisher, so what they are charging is not a royalty.
Further, Apple's stupid policy here alienates users and makes the Kindle app and similar apps more difficult to use, particularly for new and non techie users. A fellow commuter who recently won an iPad 2, for example, is having a hard time figuring out how to make Kindle purchases, even though friends have tried to help here with this.
Ultimately this hurts Apple as much as it hurts Amazon since it undermines the iPad user experience. I would have thought that the Apple people would be smarter than this. People buy iPads to uses them, not to admire them or to praise Steve Jobs' ingenuity. Even what the Apple people think is a sound business decision is a mistake if it results in people having a bad experience in using the iPad.
Apple's focus should be on getting people to use the device with the best and most user friendly and most easily accessible apps possible. This is their greatest competitive advantage over their competitors. And to be blunt, even if Apple charged nothing for apps, they would still make a profit.
And although it is unlikely that Apple would drop the Kindle app altogether, this fear is not good PR for Apple and decreases the goodwill associated with the iPad.
There are a host of reasons for Apple to treat book vendors and magazine publishers differently than they do other app developers. But ultimately Apple can do whatever it wants. So can current and potential iPad customers. And as the Blackberry executives have found out, there is no such thing as brand loyalty when people believe that they can find better value elsewhere.