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Amazon plans touchscreen Kindle

Amazon KindleAmazon is rumoured to have bought Touchco, a startup specialising in touch screens, prompting speculation that the online retailer plans to merge the company and its technology into its own Kindle division.

The story comes from what the New York Times calls 'an insider' and, if true, suggests Amazon is planning a response to the Apple iPad launched last week.

The iPad boasts the iBooks application, which competes directly with Amazon’s Kindle e-book reader by way of deals with publishers Penguin, Simon and Schuster, HarperCollins, Macmillian and Hachette.

Touchco specializes in resistive touch screen displays that display full color. Although not as precise and elegant as the capacitive tech used by the iPad, they are much cheaper. It would allow Amazon to keep its significant price advantage if it moves ahead with a touch screen Kindle.

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