Apple’s new Flipboard-style News app may offer users better reading experiences, but Nilay Patel says Flipboard and other news organizations are struggling to turn traffic into revenue, which won’t be something Apple worries about. Patel says Apple’s main concern is continuing to sell iPhones, because Apple doesn’t need to make money off News. Patel says: “[Apple’s News] doesn’t seem nearly as threatening, because Apple has virtually no incentive to make money against news the way Facebook does. Apple has $178 billion in the bank; Apple News could lose a million dollars a year for the next five years and it’s not clear anyone would even notice.”
+ Jim Ray says if Apple’s News succeeds, it could be good for publishers: “If News is successful, it means more than another good default app on Apple’s devices, it means tremendously useful data … for other services, like Siri, possibly even available to developers. Then it becomes more than a product but a foundation” (Flicker Fusion)
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