Does Competition Lower Prices?

Apple and its iconic leader Steve Jobs rank near the top of any list of great innovators. Dating back to the introduction of the Macintosh on Super Bowl Sunday 1984 – and the Orwellian ad directed by Ridley Scott – continuing through the iPod, iMac and now iPad… Apple keeps churning out the hits and changing industries.

After Amazon shook the publishing world with its Kindle electronic reader, most pundits felt it was a matter of time before Apple would introduce a better device. It took two years before last week’s announcement of a “truly magical product” that comes in full color, allows Internet access, works with all 140,000 Apps – and this is just version 1.0.

Of course, there’s a ‘dark side’ of any great story… and this one impacts consumers. Kindle pricing on new releases is $10 – a tremendous savings compared to buying the hardback; however, within days of the iPads’ introduction, Macmillan said it will increase e-book prices to $13-$15.

Amazon reacted by pulling Macmillan titles: “We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. Ultimately, however, we will have to capitulate and accept Macmillan’s terms.”

So going forward, Macmillan will set prices and pay Amazon a 30 percent commission. Not surprisingly, that’s the agreement Apple made with major publishers. (And you thought all of the mystery and drama only happens inside the pages!)

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Premature Evaluation

Early this morning the announcement came down that President Obama is the winner of the 2009 Nobel Peace Prize. He becomes the fourth U.S. president to be honored with this coveted award. The first two – Theodore Roosevelt in 1906 and Woodrow Wilson in 1919 – were well into their two terms in the Oval Office prior to receiving such esteemed recognition. Carter, meanwhile, was removed from the White House more than a quarter of a century before being bestowed for a lifetime of achievement in 2002.

The 2009 prize is for accomplishments prior to February 1st, which means Mr. Obama was inaugurated just 11 days beforehand. Thus, the Norwegian Nobel Committee is honoring what he did prior to becoming Commander-in-Chief. “Only very rarely has a person to the same extent as Obama captured the world’s attention and given its people hope for a better future,” said committee chairman Thorbjoern Jagland.

It is clear that our dynamic president is a powerful speaker who has the ability to engage a global audience. That’s why stadiums filled to capacity wherever he appeared during the campaign – and why the inauguration events were so must-see-TV. It is my hope his decision-making, policy setting and leadership in the next three years live up to the lofty expectations and suddenly glowing recognition.

As someone who spent 15 years working in and around college and professional sports, I’ve seen up close and personal that games aren’t won in the first half or early innings. Being president is a marathon, not a sprint. There are many miles ahead for Mr. Obama, and he needs to start making moves and executing actual initiatives to help our struggling citizens. Only then will he be worthy of all the overwhelming praise.

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