Amazon Set to Announce Kindle That Rivals the iPad

 

Amazon appears poised to introduce a touch screen tablet of its own this coming holiday season, according to a new report.

The New York Times says the online retailing giant is about to announce a new, full-color updating of its Kindle e-reader as early as this week. (The company has scheduled a news conference in New York City on Wednesday). And analysts see it as the biggest threat yet to Apple's dominance with the iPad.

Though other technology companies have floundered with their own iPad competitive devices (Blackberry sold just 200,000 PlayBooks in three months), Amazon follows a different strategy than Apple. The latter offers content in order to sell devices, while the former sells devices in order to sell content.

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An analyst for Forresters calls Amazon "a nasty competitor," and another points out that the retailer will likely sell the new device for around $250. That's just half the price of the iPad.

The specs are still top secret, but the Times reports the Amazon device will likely have a seven inch screen (versus the iPad's 10-inch screen) and will offer e-mail and a Web browser.

Another device that will likely suffer from the introduction of Amazon's updated Kindle, is Barnes & Noble's color Nook, which is sold for the same price but would not offer the number of options the new Kindle would.

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