Apple (NASDAQ:AAPL) is in talks with five major book publishers – Penguin, Simon & Schuster, HarperCollins, Macmillan, and Hachette – to make their books available for download through the iTunes store.
Apple is looking to create a variety of price points for ebooks – $14.99, $12.99, $9.99 and $4.99. New books that are available in bookstores as hardcovers are likely to be priced at the higher range; however, we believe that the majority of books will be priced lower and estimate the average ebook pricing through Apple will be around $8 for 2010. We also expect eBooks pricing to decline to around $6.7 by the end of Trefis forecast period.
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You can modify our forecast for ebooks pricing to see how Apple’s stock will be impacted if the pricing doesn’t decline as fast as we forecast.
For additional analysis and forecasts, here is our complete model for AAPL.