Since the iPad became available for pre-order last Friday, Apple has sold hundreds of thousands of the device, say people familiar with the matter. One of these people said Apple could sell more iPads in its first three months than it sold iPhones in the three months after the smart phone's debut.

Yet the company is still negotiating with media companies for a price cut on TV shows that people can download onto the device, said people familiar with the matter. Apple also hoped to work closely with newspaper, magazines and textbook publishers on new ways to digitally present print content on the iPad, but has for now put the effort on backburner in favor of focusing on other content, said one of those people.

We only learned of Apple's actions based on your stories and Apple's press release. We have not been served yet so we are in no position to comment on the claims. We respect and value patent rights but we are committed to defending our own innovations. We have been innovating and patenting our own technology for 13 years.

In a research note this morning, Canaccord Adams analyst Peter Misek says he has heard rumblings that production issues at Apple's (AAPL) manufacturing partners may keep the company's iPad in short supply when it first goes on sale.

"We have...heard that the upcoming iPad launch may be somewhat limited as a manufacturing bottleneck has impacted production of Apple's newest device," Misek writes.

"An unspecified production problem at the iPad's manufacturer, Hon Hai Precision," the analyst explains, "will likely limit the launch region to the US and the number of units available to roughly 300K in the month of March, far lower than the company's initial estimate of 1,000K units."

Apple said the child workers are now no longer being used, or are no longer underage. "In each of the three facilities, we required a review of all employment records for the year as well as a complete analysis of the hiring process to clarify how underage people had been able to gain employment," Apple said, in an annual report on its suppliers.

Apple has been repeatedly criticised for using factories that abuse workers and where conditions are poor. Last week, it emerged that 62 workers at a factory that manufactures products for Apple and Nokia had been poisoned by n-hexane, a toxic chemical that can cause muscular degeneration and blur eyesight. Apple has not commented on the problems at the plant, which is run by Wintek, in the Chinese city of Suzhou.

Tim Cook, Apple's chief operating officer, spoke at the Goldman Sachs annual tech conference in San Francisco Tuesday afternoon. He said the iPad will launch in retail, online education and other direct sales from Apple, but will also include the company's assisted sales from partners like Best Buy.

The announcement suggests AT&T stores could also offer iPad sales, though Cook did not specifically mention Apple's wireless partner in the U.S. Overseas, Apple's premium resellers will also offer the iPad at brick-and-mortar locations.

"Initially it will be around places with really great assisted sales," Cook said. "Over time it will expand."

Thousands of apps with adult-themed content have been removed from the store since Friday although some, such as one from Playboy, remain.

Apple has said that certain apps were removed following customer complaints. Developer Jon Atherton is angry that previously-approved apps have been pulled, and accuses Apple of "experimenting with our livelihoods".