New Kindle coming? Amazon said to buy touch screen tech start-up

Posted by Maria Conde on February 4, 2010 at 2:25 PM
amazon.jpgIn what seems to be the latest move in the battle of the e-readers, Amazon has acquired Touchco, a start-up based in New York that specializes in touch screen technology, to possibly update its Kindle e-reader so it can better compete with Apple's iPad.

The New York Times reports that Amazon will merge Touchco's technology and staff members into its Kindle hardware division, Lab126, based in Cupertino, California, a source briefed on the deal said on Wednesday.
The Kindle, with its slow-to-load, black and white display, could receive a much-needed facelift with Touchco's flexible and multitouch technology. Touchco, which began as a project at the Media Research Lab at New York University, had roughly six employees and had not yet turned its scientific know-how into a commercial product before Amazon bought it, says the NYT. However, Touchco's technology is quite promising because it can deliver a color touch screen that can detect different kinds of pressure and an unlimited number of touch points. But, the best part of the deal by far is its cost - Touchco can produce a touch screen with all of these capabilities at a considerably lower price than the ones Apple used on the iPad and the iPhone.

Thumbnail image for touchco.jpgWith this technology in its repertoire, Amazon could be gearing up to build a Superkindle - a new, full-color multitouch e-reader that would be more apt to directly compete with the iPad, as The New York Times Tech Bits Blog explains.

Donald Norman, a professor at Northwestern University and an expert on design and engineering told the NYT that while the previous technology the Kindle used for its screen, E Ink, was well suited for reading long books, "it is too slow and ponderous" for reference works, multimedia, and any table device that seeks to connect to a wide range of entertainment.

But, a fancy touch screen may not be all that is in the cards for the Kindle - built-in applications are coming too. About two weeks ago, in a move that anticipated the uproar of the iPad's launch, Amazon announced that it was letting programmers create 'active content', similar to applications, for the Kindle. Amazon also announced favorable conditions for app makers, where they can keep 70 percent of the revenue from each sale after paying for wireless delivery costs.

The iPad's arrival has ignited hopes that competition for the top-spot in the e-reader realm will prompt Amazon to change its position on certain points as it fights to keep the Kindle relevant.

Indeed, its announcement to allow programmers to create apps for the Kindle could potentially transform Amazon's relationship with newspapers and magazines that make digital editions for the Kindle. News executives' dissatisfaction with their 30 percent cut of subscription fees and lack of a direct relationship with those subscribers might all come to an end with a Kindle app store. A Kindle app store could allow media companies to sell more profitable applications to Kindle users.

Thumbnail image for kindledxbig.jpg Furthermore, the new colorful touch screen technology that Amazon could be planning to include in its new Superkindle may also give newspaper and magazine publishers an opportunity to present interactive and multimedia content with eye-catching graphics and designs.

So far, it seems these two changes could level the playing field for Amazon's Kindle, but as the iPad prepares to ship in March, Amazon can only hope that its efforts to counter Apple's competition with a new and improved Kindle have not come too late.

Spokepersons for both Amazon and Touchco declined to comment, according to The New York Times. No further details on the acquisition were given.

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