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Using the app, which was announced at the same time as a new textbook experience for iPad, users can drag a Word file into a book creation space. The app automatically determines the best way to lay out the book and creates appropriate sections and headers. Users can then drag and resize images within the text and add definitions, photo galleries, movies Keynote presentations and 3D objects.
Users can preview their books on their iPads or publish them directly to the iBook store.
Apple's Philip Schiller called iBooks Author "the most advanced, most powerful, yet most fun ebook authoring tool every created."
You can judge for yourself whether he's right, starting today. The app is free and available in the Mac App Store.