Apple

Amazon’s digital sales grew 29% for Q1 2012 compared to Q4 2011, while  iTunes sales only grew 2% during the same period. This is according to a new report from intelligence company eDataSource, which estimated of the sales of both iTunes and Amazon’s digital business as part of its new e-commerce monitoring service.

The report included Kindle content, MP3 sales, streaming videos and Android apps when measuring Amazon’s digital business and included music, video, apps and digital print in  iTunes sales.

While Amazon’s business appears to be growing faster in these numbers, the report points out that iTunes sales still are 3.5x higher than Amazon’s digital sales volume domestically. In addition, the report found that iTunes customers spend 61% more than Amazon digital customers. Read more

New reports are circulating that the Department of Justice’s antitrust investigation into Apple and publishers over eBook pricing may turn into a lawsuit. According to Bloomberg, Apple and Macmillan are preparing themselves for this outcome.

Here is more from Bloomberg: “Apple and Macmillan, which have refused to engage in settlement talks with the Justice Department, deny they colluded to raise prices for digital books, the people said. In an antitrust case, they will argue that pricing agreements between Apple and publishers enhanced competition in the e-book industry, which was dominated by Amazon.com Inc.”

Simon & Schuster, Hachette, Penguin, and HarperCollins Publishers are also being investigated for the lawsuit though reports are circulating that these publishers are inclined to settle the case out of court.

The Justice Department is reportedly getting close to a settlement with Apple and the “big six” publishers. Last month, the government agency brought charges against the iPad maker, Simon & Schuster, Hachette, Pearson, Penguin, Macmillan and HarperCollins Publishers, alleging collusion in eBook pricing.

Reuters has more details about the case: “While negotiations are still fluid, the settlement is expected to eliminate Apple’s so-called ‘most favored nation’ status, which had prevented the publishers from selling lower-priced e-books through rival retailers such as Amazon.com Inc (AMZN.O) or Barnes & Noble Inc (BKS.N), the people said. The deal could also force a shift, at least temporarily, in pricing control from publishers to retailers, one of the people said.”

Even though the iPad is really great for consuming content, making a book for iBooks has been relatively static for most book makers. While iBooks 2 lets publishers add interactive features to digital textbooks, many eBook publishers that want to get interactive and create richer experiences have had to create apps.

Unfortunately, it often works out that apps, which can be more expensive to make, sell for much less than books, which are arguably cheaper to create. Fast Company raises this issue with book packager Ellen Jacob. Jacob tells the magazine: “Apple’s approach doesn’t allow many interactions in e-books. You can put in an entire movie but you can’t put in something that makes kids read deeper. What’s the sense in that?”

Where do you sell your interactive eBooks — iBooks or iTunes? Why?

There’s an old tradition with Apple products. As soon as a new one comes out, someone has to kill it, whether by smashing it, blending it, or even shooting at it. SquareTrade got into the iPad abuse fun today, only they had a practical purpose. They put the new iPad 3 through a drop test.

The new iPad was rumored to have Gorilla Glass on the screen, but it wasn’t mentioned at the launch event. But as you can see in the video, the new iPad uses the same screen protection as the iPad 2. You might want to get the insurance after all.

Apple’s new iPad hits stores tomorrow, and there will be more than the usual lines of fans in NYC, San Francisco and Washington, DC. Change.org protesters will be joining Apple customers in line in a move to get Apple to “stop worker abuse in their factories.”

The press release explains: “Demonstrators will demand Apple create a worker protection strategy to prevent workplace abuse, injury, and death, including how to keep workers safe during labor-intensive releases of new products like the iPad 3.”

Apple has faced scrutiny for the past few months after reports of unsafe working conditions in its factories in China emerged. In response to the criticism, Apple has launched investigations into the working conditions in tis factories in China. This includes partnering with the Fair Labor Association who is interviewing thousands of employees asking questions about the conditions including such issues as health and safety, compensation, working hours and communication with management.

Change.org also has a petition online for concerned consumers.

Apple is shipping the new iPad this week. In advance of the release, they have posted a new video demo of the tablet on YouTube. The tablet, which is currently available for preorder, has a retina display with 2048 x 1536 pixels that supports quad core graphics, along with a new A5X chip which helps it run faster and it runs on the 4G LTE network. Check out the video above to see how it works.

Apple is defending itself in the Department of Justice investigation that alleges that Apple and publishers have been colluding to fix eBook pricing.

In Walter Issacson‘s biography, Steve Jobs admitted to telling publishers, “We’ll go to the agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that’s what you want anyway,” and then revealing that publishers threatened to withhold books from Amazon if they didn’t adopt the agency model.

But Apple’s lawyers are downplaying antitrust concerns that this passage might suggest. PaidContent.org has linked to an Apple court filing responding to the DOJ investigation which reads: “…if Amazon was a ‘threat’ that needed to be squelched by means of an illegal conspiracy, why would Apple offer Amazon’s Kindle app on the iPad? Why would Apple conclude that conspiring to force Amazon to no longer lose money on eBooks would cripple Amazon’s competitive fortunes? And why would Apple perceive the need for an illegal solution to the “Kindle threat” when it had an obvious and lawful one which it implemented – namely, introducing a multipurpose device (the iPad) whose marketing and sales success was not centered on eBook sales?”

Apple has never been one to delay apps until after a new gadget, and the new iPad was no exception.

iBooks got an update yesterday, and it now supports the retina display found on the new iPad. The update also boasts a number of other improvements, including page numbers, improved highlighting, and a number of important stability and performance improvements.

iTunes

On a related note, Apple also updated iTunes U to support the new iPad.

In a press conference today, Apple introduced the “new iPad.” The third generation device has a number of new features that make it a device to create on, versus just a device to consume on. CNET quoted Apple’s SVP Philip Schiller as saying, “Don’t let anyone tell you that you can’t create on an iPad.”

For example, the iPad comes with a 5 megapixel camera that can shoot photos and high def videos and there are apps for editing these photos and videos directly on the device.

The device is also faster than earlier versions and has a much high resolution than earlier generations. It has a retina display with 2048 x 1536 pixels that supports quad core graphics. It has a new A5X chip which helps it run faster and it runs on the 4G LTE network. The new iPad is 1.4mm thin and weighs 1.4lbs and costs $499. You can preorder today and the devices will ship on 3/16.

For more details, check out our live blog from today’s press conference.