While a number of publishers ink special deals with Apple to bring their content to the App Store, Apple’s new in-app purchasing rules are forcing publishing middle men out of business. That’s the message from the creators of iFlow Reader, which just shut down.
“We put our faith in Apple and they screwed us,” Philip Huber of BeamItDown Software told users. The developer got squeezed between Apple’s demand for a 30 percent cut and other expenses. “Our gross margin on ebooks after paying the wholesaler is less than 30 percent, which means that we would have to take a loss on all ebooks sold,” Huber explained.