But the problem is Apple is forcing them to offer same price in App store as on their own website. This means apps like kindle could not say okay we want to play in Apples sandbox so we will raise prices on ios but if people come our site they can get a better deal. Apple will not allow it and it will kill some of these content providers business models if they play by Apples rules. Especially in areas where they have to compete with Apple like ibooks. In fact I bet Amazon does not make a 30% margin on selling ebooks.
I want to consume my content from publisher I choose on device I bought (just like my desktop and laptop) without Apple meddling. That is why I am looking at Android.
The problem, or possible problem with what Apple is trying to enforce, for a company like Amazon is that they are a retailer, not a direct publisher for all of their content. As such, they do not necessarily have the additional mark-up to be able to distribute wholesale their content, giving Apple a cut.
If I were Apple, in situations like this, I would create a separate (lower) category for mark-up on products that are essentially being re-distributed. Of course Apple is a for-profit business and it's in their best interest to try to get their piece of the pie for the sale of products generated through the use of their iOS and devices. This is how business works.
If Apple fails to get companies to sign on to this deal and the amount of content suffers, then Apple may suffer when consumers look outside the ecosystem for what they want. I'm guessing that this is a chance that Apple is willing to take at this point in the game, given they've created the game and the "rules" are what they want to make them be.
Making a switch from one device to another is everyone's prerogative, but shouldn't you wait until you are actually "suffering" from the lack of something you want on one device so you can get it on another?
And for those people who are not part of the manufacturing and sale of a consumer product - a little education: Margins that retailers make vary with product category and by retailer. With a retailer like Costco, their mark-up can be as low as 13%, but won't go much higher than 18%. Most brick and mortar stores shoot for a 50% gross margin on product, but deviate up and down from there (generally electronics have low margins compared to many other consumer products) . Wal-Mart can operate on lower mark-ups, compared to even their closest competitor such as Target, because they have efficiencies in their distribution system, operations, etc that allow them sell more products for less and still be a profitable company.
Many retailers also have back-end deals that can add up to another 20%+ - a number that comes out of the product manufacturer's profit. What manufacturers mark the product up to sell to retailers, or distributors who serve retail, has just about the same type of variance. Do big volumes on a commodity item and you may be happy making 20% gross. Make a specialty product selling in low quantities to a specialty market and you could make 80%+.