Apple tells publishers what price to charge for iBooks

<p>The so-called agency model is a &quot;mirage&quot; with Apple dictating to publishers what they can charge for books sold via the iBook Store on Apple&#39;s iPad, according to various reports reacting to an email leak from the e-book self-publishing company Smashwords.</p><p>According to the email, sent to its authors, Apple has set maximum prices for iBooks based on the price of the print equivalent. For all print books published with a list price of $22 or less, the iBook cannot be greater than $9.99 during the first twelve months after publication. For other prices, a sliding scale comes into operation meaning the price of iBooks can rise to $19.99 for print books priced between $35.01 and $40. For hardcover books priced above $40, publishers can set their own price. If a book is not available in print, any price can be charged.<br /><br />According to one report, based on this pricing structure, 12 of the 14 <em>New York Times</em> Bestselling Fiction titles currently featured in Amazon&rsquo;s Kindle store would be priced higher in the iBook Store.<br /><br />According to Publishers Lunch, there are provisions that move the maximum price down to $12.99 once a hardcover makes the <em>NYT</em> bestseller list, regardless of the print price.</p><p><strong>Smashwords leak:</strong></p><p><em>If your price is $22.01-$24.00, the maximum ebook price is $10.99;<br />$24.01-$25.00 is $11.99;<br />$25.01-$27.50 is $12.99;<br />$27.51-$30.00 is $14.99;<br />$30.01-$35.00 is $16.99;<br />$35.01-$40.00 is $19.99.<br /><br />If your hardcover book is priced above $40.00, you can price your Apple ebook at any price you like.</em><br /><br /><br /><br /></p>