U.S. Justice Department Charges Apple, 5 Publishers with Price Fixing

High flying Apple, whose market value recently topped $600 billion, has been hit by charges from the United States Justice Department alleging that Apple and five publishing partners have engaged in price fixing.

The charges allege that Apple and five publishers: Simon & Schuster, HarperCollins, Hachette, Penguin Group (USA), and Macmillan conspired to end competition on ebooks and set a higher price, with Apple being guaranteed a 30% commission on each sale.

The deal was reached in 2010 the reports said, right when Apple introduced the iPad and was aimed at Amazon and was intended to limit Amazon’s ability to discount ebooks, which it was then selling at $9.99 for new and recently released offerings.

According to a report in the Wall Street Journal three of the publishers have already reached an accord with the Justice Department and have said that they will terminate any such agreement with Apple. Those are Hachett, Simon & Schuster and HarperCollins.

The overall outcome of this will be interesting to see. In the past the Justice Department has gone after some other major players in hi-tech, notably IBM and Microsoft, and has won its cases. Apple has been increasingly litigious in recent years but this is a much bigger foe than someone such as Samsung or Motorola Mobility.

However when you ask people about what Apple does, very few would mention that it makes a competitive e-reader. In fact some may not know that is a very valuable use of the iPad, showing that this is not really a major market for its products.

So why not settle? It has been reported that three of the publishers already have, but also that Apple has been fighting the charges. I suspect that in the long run Apple will find that it is cheaper simply to tag along on the settlements negotiated by its former partners.

Toshiba Shows 13.3-inch Tablet — Perfect for Watching Sports?

Are you looking for a tablet but so far none have met your needs, with the small Galaxy Note not even in the conversation, the kindle and Nook not even close to the correct size and the iPad and its ilk closer but no cigar? Then Toshiba might just have what you are looking for.

Toshiba’s Digital Products Division has introduced its line of Excite tablets today with a trio of offerings including one that features a 13.3-inch display, along with a 7.7 and a 10.1-inch offering to fill out the new Excite line.

The company said that it believes that a one size fits all model does not work in the tablet space and that it believes that the growing usage of tablets in an increasingly wide number of user applications calls for multiple sizes and features.

The three will share a few features including operating with the Android 4.0 OS, a Tegra 3 Super 4-Plus-1 quad core processor, having scratch resistant Gorilla glass and a full suite of Google mobile service applications. All three will also feature a 5MP rear facing camera as well as a 2MP front facing camera and stereo speakers.

The company recently unveiled the details on the 10-inch model so we covered that here but both the 7-inch, which will compete with the Nooks’ and Kindles’ of the market as well as the 13-inch monster are the talk of the release. The Excite 10 tablet will be available for purchase at the beginning of May 2012 for $449.99 for the 16GB model, $529.99 for the 32GB model and $649.99 for the 64GB model.

The company said that it sees the Excite 13 tablet as one that will appeal to groups for things such as watching movies, playing games and sharing photos. The tablet is 0.4 inches thick and weights 2.2 lbs. It features a 13.3-inch LED backlit display with 1600 x 1900 resolution. The Excite 13 tablet will be available for purchase at the beginning of June 2012 for $649.99 for the 32GB model and $749.99 for the 64GB model.

The Excite 7.7 is targeted at an on-the go user that does not want the bulk of a larger tablet. The Excite 7.7 tablet will be available for purchase at the beginning of June 2012 for $499.99 for the 16GB model and $579.99 for the 32GB model

I have to say that I really like their thinking on this product. It is not positioned as another iPad killer but rather as a product that serves different segments such as family and group use or users on the go rather than delivering a banal push for a tablet user. Samsung’s growing success with its Galaxy Note and other tablets shows that consumers are open to alternative sizes if they have the features that fit their needs.

I can certainly see the popularity of the person that brings a 13.3-inch tablet to an event where a group of friends can watch a playoff game that they would have missed if not for the tablet- even the ten-inch displays would not serve their needs as well. I wonder what the top end of tablet size will be? I suspect not any larger for mainstream users.

Want Golf Tips from Paul Azinger? Here You Go

Dropped into Starbucks for a refresher to keep my caffeine level stable and noticed that the free iTunes Pick of the Week was not a song but rather a sports app. To be specific it was “Golfplan with Paul Azinger” and its tagline was- Personalized tips from the Ryder Cup Captain.

Since my game needs all of the help it can get, even though in the wet, wintery area I live in its unlikely that I will be on the links anytime soon, I gave the app the quick one over to see if it looked like it should join the increasingly crowded area on my phone dedicated to sports apps.

The program can be used with or without a second app called Gameshot and has a number of training categories that enable a user to focus on the areas that matter the most to them and their game. They include Driving, greens in regulation, short game, bunkers and putting. Nothing about hitting from the rough, my specialty?

What really grabbed my interest was the large number of videos that are included in the app-63 in all if my count is correct. The program received a very solid rating from users that have already downloaded and used the program, 4 out of 5 overall and slightly higher with the latest version.

On iTunes the program has a listed price of $4.99 but is free with the little card that is available where you pick up your fancy drinks. It is available for both iPads and iPhones.

Mobile Sports Report TechWatch: Padfone Tablet Near?

Microsoft obviously realizes two major hurdles exist in front of its push to get its Windows Phone to become an established, viable player in the smartphone space. It is way behind in the app space, and it needs apps to succeed.

So it is doing what you would expect from a company that has the vast resources of Microsoft, it is launching a variety of efforts to get developers to commit to creating apps for the platform, including paying them for the work, according to The New York Times.

The software company has a number of incentives that range from funding the development of apps, prime placement in its app store, free equipment and others. The company has also established a major app development effort with Nokia.

Problems pile up for Motorola- could this kill the merger?
First off it is investigating Motorola Mobility in two separate for using legal injunctions against Apple and Microsoft to gain an edge in the market. This investigation is rooted in complaints that both companies filed against Motorola.

Part of the question that the EU will look at is did Motorola break promises with standards setting organizations and if it offered unfair licensing conditions for its standard-essential patents. Fines for this violation can be substantial.

Then there is an apparent demand for $4 billion dollars annually as royalty payments made by Motorola to Microsoft to use its patents in the Xbox that is being heard in a US court. Microsoft is retaliating by asking a judge to block the importation of Motorola phones due to patent violations.

The net result of these and China’s delaying in giving regulatory approval to the deal is that Motorola investors are getting nervous, according to the Business Insider. Shares have been dropping in the past weeks due to the delays. However in a note on Google’s Investor Page, CEO Larry Page has a long note that mentions the Motorola deal in very positive terms and that he has great expectations for the deal.

Asus taking Padfone preorders
Asus is now taking orders for its hybrid table called the Padfone. The device has two main components. The first is smartphone that is powered by a a Snapdragon S4 dual core 1.5GHz processor running the latest version of the Android operating system, v. 4.0

Then there is a 10-inch tablet that has a docking bay for the phone, with the phones processor running the tablet. I will be very interested to see how this works because a user could then leverage their cell phone data plan on the tablet, and so not need two plans. Pricing and delivery date have not yet been announced although it is expected later this month.

Samsung’s Galaxy Notes hits 5 million in sales
When I saw the Galaxy Note at CES I was sure it would not be a winner. It was kind of a jackalope, neither a phone nor a tablet, and too big for one purpose and too small for the other IMHO. This wisdom is why I am not rich. The company, which had a record breaking quarter, sold 5 million of the devices.

Now some might point out that Apple sold 3 million of its new iPads in just three days, and that is all good and true. But this is not the only arrow in Samsung’s quiver, and the company has a range of tablets, and smartphones available. Its creative thinking looks to make it a true force to be dealt with in both market segments.

Tablet and smartphone owners multitask with TV
One of the latest news reports from Nielsen shows that globally 88% of tablet owners and 86% of smartphone owners said that they used their device at least once in a 30 day period while watching television.

In the United States 26% said that they used their tablet multiple times a day when watching television and 27% said that they did so with their smartphones. Those numbers were roughly double that of those who said that they never did.

The top purpose was to view e-mail, both during the actual broadcasts and during the commercial breaks. A popular alternative was to check out information related to ether the program, or good news for advertisers, looking up information on products shown during commercial breaks.

Apple closing on facial recognition software?
A new patent that Apple as filed for shows that the company is developing features that will enable control of an iOS device via facial recognition. The patent lists a method to create an automatic user-switching system which can lock, unlock, as well as reconfigure a device for users based on face detection using a front-facing camera.

As discussed in Ars technica the patent, “Electronic Device Operation Adjustment Based On Face Detection” it has the ability to lock out unauthorized users as well as be set for specific preferences. There is already a facial unlock feature on the Android side in v. 4.0.

Is Masters Online Coverage Feeling the Pressure?

Tiger in the creek at #13

Don’t know if this is a widespread thing or if it’s only affecting me but I would have to say that through 2 and a half rounds the online coverage of the Masters this year is playing about as well as Tiger Woods. Meaning that when it’s on, the online coverage is world class. But so far this year like el Tigre there’s been a lot of bad to go with the good.

The problem I am seeing most is just stuttering load times — for no reason the screen will just stop and you get the feared white line circling around the logo, the Masters online equivalent of the old Windows hourglass or the Mac spinning rainbow. And when the live coverage does come on there seems to be a long wait for the pixelation to go away. I have also seen on several occasions a Matrix-like instant repeat, a replay of the scene shown just seconds before. Once it got so bad (5-6 times in a row) I had to shut down the app and start over.

(Just for reference I have been watching mainly the Masters.com service online. Went to the CBSSports.com window a few times but saw some similar problems there. Also think the Masters.com design is a better feel.)

Before you tell me this is just my setup, rest assured I have done all the home-fix things I can, closing and clearing the browser cache, resetting the router and the cable modem, and the problems are persisting. And I am on a Comcast Internet connection that just tested out at 35 Mbps download so it ain’t the ISP. We’ve asked the folks at IBM if they are having any problems but my guess is that we’re not going to hear anything from them so if you are having similar issues let us know in the comments below.

I also tested out the Android app, which is new this year, during a trip to the doctor’s office yesterday. While I was generally pleased with the service (I mean it’s pretty damn amazing to be sitting there watching live golf on your phone, right?) I did notice that the app kept telling me (every few minutes) that the “this video not optimized for mobile.” Exsqueeze me? If it’s not optimized for mobile what’s it doing on my phone?

So… watching Tiger trying to get back into the tourney it looks like he is playing solidly but not amazing anyone. I’d have to give a similar grade to the online coverage this year, though with a note that the Masters online is by far the most ambitious digital coverage of any major sporting event, hands down. Like the Masters, this stuff ain’t easy.

Cloak Seeks to Secure Apple iOS Traffic

We write a lot here about using mobile technology to view sports, order food at games and a host of other interesting things, at least to us. Most users by now know that streaming a game can kill your data plan so most savvy users do so over Wi-Fi.

So what if you are out? Then you head to Starbucks or some other place that has hopefully free, Wi-Fi available. But security risks abound, and it seems that you hear about a new one each day. Well an app caught my eye in the Hartford Courant and it might fit the bill.

It is called Cloak and it is designed for Apple’s iOS devices including the Mac and it encrypts and reroutes your traffic through a Virtual Personal Network (VPN) whenever you use a public Wi-Fi network. You sign up and the basic app is free, or for a heavier user there are plans that start at $8 a month. I plan to try it out and it got generally good reviews at the iTunes app store.