As Apple announced its iPad and iBookstore, there was a shift of momentum in the book publishing industry. Amazon's strategy for selling e-books on the Kindle was to sell them at a discounted price, such as $9.99, but Apple, somewhat surprisingly, announced higher book prices for titles bought through the iBookstore.
Soon, however, the big publishers such as Macmillan pressured Amazon into letting them sell books through an agency pricing model, which essentially means more money to them, but higher book prices - $12.99 or $14.99 - for the end users.
Now, there's another twist to this story, as the New York Times discovers that Apple may have a deal with publishers that ensures lower prices for bestsellers. A title that costs $12.99 would cost significantly less once it hit the bestseller list. Furthermore, Apple wants cheaper hardcover titles to also be cheaper in e-book form.