Apple proposes prices that would actually be profitable, wanting to position best sellers between $12.99 and $14.99. AppleInsider notes that Apple's plan is a similar one to the App Store where the publisher takes 70% and Apple takes a 30% cut. Under the Amazon plan, including the $4.50 Amazon subsidy, book publishers are currently being paid $14.50 while under Apple's model, the publisher of a bestseller would only make $10.49 per copy.
The idea of Amazon subsidizing books is unsustainable in any competitive market and with more than one big razor in town, or at least one showing up soon, the market will inevitably settle on one method or the other.
[via AppleInsider and WSJ]