Apple rejects Sony Reader Store, limits in-app content sales

Apple's (NASDAQ:AAPL) App Store has rejected Sony Corporation's proposed iPhone digital reader application, telling the electronics manufacturer that from now on, all in-app content purchases must go through Apple. The New York Times reports Apple has told multiple application developers that they can no longer sell content like e-books from within their iOS apps, also restricting consumer access to purchases made outside the App Store; the Sony Reader Store app would have enabled users to purchase and read ebook titles acquired via Sony, not Apple.

The App Store policy change could have a profound impact on companies like online retailer Amazon.com, whose Kindle ereader application gave customers the latitude to read digital titles on Apple's iPhone and iPad tablet regardless of whether that consumer owns a Kindle ereader unit. "It's the opposite of what we wanted to bring to the market," said Sony's digital reading division president Steve Haber. "We always wanted to bring the content to as many devices as possible, not one device to one store." Apple and Amazon declined to comment.

The move also signals a dramatic shift in Apple's approach to doing business. The computing giant has traditionally depended on hardware sales to drive revenues, introducing digital storefronts like iTunes and the App Store to make it easier for customers to download content for devices like iPods and iPhones and in turn galvanizing device purchases. In addition, Apple has recently indicated it would work with publishers and other media providers seeking greater control over how their content is distributed across the iOS platform.

The App Store reached the 10 billion application download milestone in January, less than three years after the storefront first opened for business. Apple notes that the App Store now offers more than 350,000 iOS applications in all, spanning 20 categories including business, news, sports, health, reference and travel--in addition, there are now more than 60,000 native apps for the iPad tablet. Apple adds that consumers downloaded 7 billion apps in the last year alone.

For more:
- read this New York Times article

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