TouchcoAmazon has just acquired TouchCo, a technology company that offers touch screen solutions that are low cost as compared to capacitive touchscreens used in smartphones and in the iPad. Touchco’s touchscreen solutions work well on LCDs. With purchase of Touchco, Amazon may well be able to give a fitting response to Apple iPad and we can expect big hardware and software enhancements in Amazon Kindle while keeping the cost to minimum.

Launch of Apple iPad posed serious threats to Amazon Kindle and since then there has been lot of buzz around E-readers while many felt doubtful of Kindle’s future with launch of iPad. Amazon has been seeing it all and looks like now they are setting things up to build a competitor to Apple iPad. This is going to be interesting prospect as there are plenty of new tablets set to launch soon, including HP Slate, using Windows 7. It’s still not clear which OS will Amazon use if they plan to come up with iKindle. Another amazing aspect will be the hardware, currently Kindle uses E-Link display, if they go on to implement Touchco’s technology they’ll probably have to switch to LCDs. That will also bring colors to Kindle’s screen but they will have to compromise on readability feature of E-link displays.

While prospects are unclear at the moment, there are definitely some hints and we can expect something big coming soon.

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