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Which is an entirely defensive move. It prevented Amazon et al from forcing Apple to compete on price. Apple wanted to offer a bookstore and have it be competitive, without risking having to run it at a loss under attack from the other booksellers. It wanted to have its own book platform, so that it wasn't entirely hostage to Amazon and the others, but it didn't want to have to spend much effort on it.
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So, if Apple didn't want to be forced to run a book store at a loss and Apple's real intent was to sell hardware and magazines. Why not just let Kobo, B&N, Amazon etc. sell their books at a loss while providing Apple with free content for their users?
It wanted to have a book store so it wouldn't be a hostage to others? I'm trying to figure out what it was Amazon and the others were going to do to Apple who didn't want to put much effort into their book store because what they really wanted to do was sell hardware and subscriptions?