IPhone and Eve: Apple's Old Testament Tactics are Bad Business
It must have been confusing for Eve that God created the apple, but decreed the delicious fruit off limits. European publishers are similarly baffled about why Apple (APPL) would create the iPhone, but ban their publications from its online store. Several mainstream publishers recently had their content deleted because Apple deemed it too pornographic. What's most frustrating to the publishers is Apple's Old Testament approach: wrathful and random.
During the latest purge some 5,000 apps were deleted from Apple's online store because they were too sexual. Yet, while German magazines and cartoon boobs are gone, mainstream pornographers like Playboy (PLA) can still sell their content through Apple. And even after the publishers made changes to accommodate Apple, they often found their content rejected a second time. The Association of German Magazine Publishers recently sent a letter of complaint to Apple after several major magazines had their content pulled. "Apple's behavior brutally showed publishers that they are the junior partners in this relationship," said spokesman Peter Klotzki. For now Klotzki is right. Apple's iPhone and upcoming iPad have given it a lot of leverage with publishers. But that clout will quickly fade as a flood of devices enter the market that can display traditional print content in an attractive mobile format.
Imagine choosing between two new TV sets, one of which shows you the channels you want, and another which decides what content to censor. A better solution would be for Apple to rate the apps in its store, and to introduce a way for parents to set controls for what ratings their children can view. Blocking mainstream magazines over a few nipples is going to alienate publishers and consumers alike. For now Apple is the voice on high, and the app store is their Eden. But pretty soon businesses are going to decide it makes sense to live in a more accommodating garden.
