Here are your Apple rumors and AAPL news items for today:
Market Share: According to an executive testifying at Apple’s (AAPL) price-fixing trial in New York City on Monday, the iPad-maker’s e-book sales are roughly equal to those of Barnes & Noble (BKS), CNET notes. Apple Senior Vice President Eddy Cue said that about 25% of all e-books sales are made through the company’s iBookstore. Cue noted that Apple and Barnes & Noble routinely trade second and third places in the e-book market behind market leader Amazon (AMZN). The Department of Justice has sued Apple for allegedly colluding with five publishers to set e-book prices. The five publishers have since settled with the government. Apple, which denies the charges is contesting the DOJ’s claims. In an email introduced as evidence by prosecutors, Cue called the iBookstore a failure in October 2010, six month’s after its launch, because it didn’t feature books from Random House. The government claims Apple finally persuaded Random House to sell books through iBookstore in 2011 by threatening to reject the publisher’s app. At that time, Apple had about 20% of e-book sales, according to Cue’s email. The trial is scheduled to wrap up on Thursday.
Cool Phones: Apple is developing a liquid cooling system for the iPhone, DigiTimes reports. The system would use “ultra-thin heat pipes” to channel liquid within the iPhone, reducing internal heat and increasing battery efficiency. Rival smartphone makers Samsung and HTC are also developing similar technology for their smartphones. Internal heat is already a growing problem for smartphone makers and the adoption of 4G connectivity is making it worse. All three companies could launch liquid-cooled smartphones during the fourth calendar quarter of this year, DigiTimes notes. DigiTimes has a decidedly mixed track record on predicting Apple product developments.
Unbreakable: With revelations of the National Security Agency’s PRISM program still reverberating, Apple has again denied that it provides the government with direct access to its servers, TheVerge notes. In addition to revealing the number of requests it receives from law enforcement agencies for customer data, Apple also insists that it does not provide the government with FaceTime and iMessage content, because it can’t. Apple says that data sent via iMessage and FaceTime is fully encrypted and can’t be deciphered even by Apple itself. In April, reports circulated that the Drug Enforcement Agency was unable to crack iMessage encryption during narcotics investigations.
For more about the company, check out our previous Apple Rumors stories.