Every Kindle fan has been wondering how Amazon is going to respond to Apple iPad. The iPad is not an e-book reader and does not take advantage of E-Ink screen technology. But the device has the marketing power of Apple behind it. The fact that there will be thousands of apps available for the device in iTunes does not hurt either. We already know that Amazon intends to release Kindle Touch in the near future but is it all a little too late?

Amazon has real reasons to be nervous about Apple iPad. Apple intends to manufacture 5 million units in the first half of 2010, and it could pass Kindle’s sales mark in just 3 months. While it may take Apple more than 3 months to beat Kindle numbers (3 million), the iPad is widely expected to become the next king of the hill in the e-reader market. The iPad may not be the best e-book reader on the market, but that won’t matter as Apple has positioned the device as “cool” and “revolutionary.” The curiosity factor is certainly there for many consumers.

Amazon has made a practice of cutting Kindle prices to generate more interest in the device. No matter how much discount consumers get from Amazon, many still complain about Kindle being too expensive. That’s going to be a harder case to argue if Amazon does manage to lower Kindle’s price to $150. Freescale Semiconductor, whose products power the majority of e-readers on the market, has claimed that e-reader prices could drop to below $150 with the new processors that the company has developed specifically for e-book readers.

With the ARM core running at 800 MHz, the i.MX508 provides twice the rendering performance of Freescale’s previous eReader processors, resulting in faster page turns and snappy responsiveness for consumers. The increased processing capability also gives manufacturers the additional performance to add features like advanced touch solutions and the ability to run other value-added applications.

That’s quite interesting as Amazon Kindle 3 is expected to feature touch capability and Kindle apps. So the new processor does seem to be a good step forward for Amazon.

Rumors have been flying across the Web about the possibility of Amazon getting a platform upgrade. The source of these rumors seems to be the latest development between Amazon and Microsoft. The companies have reached a patent agreement that not only covers Linux but also Kindle as well. Many have assumed that the move could be an indication that Amazon may be willing to work with Microsoft to take on Apple. Of course, the real purpose of this deal for Amazon is probably to shield itself against Linux lawsuits by Microsoft. 

When Apple announced the iPad a while ago, we all know that it will force Amazon’s hands into making some tough decisions. But the effects of iPad on Kindle could be more profound than any of us thought. Let’s face it. Amazon Kindle can’t get as cute as the iPad. If you are an e-book junkie, you probably don’t care about that. But there are many who prefer having a shiny device such as the iPad instead of a plain e-book reader such as Kindle. If the rumors are true, Amazon could be working on its own response to iPad, and that plan includes big changes for Kindle fans.

Amazon has been touting the use of E-ink technology on its e-book readers for years now. The fact that you can go for weeks without having to charge your Kindle is a big plus to e-book junkies. But it seems Amazon may be contemplating a move to conventional LCD screen technology to bring the power of touch and color to next generation Kindle. That’s not all. Amazon seems to be finally planning the addition of WiFi to Kindle. That should have happened a couple of years ago, but we’ll take what we can get from Amazon.

Touchscreen devices are on top nowadays. Apple iPhone breathed new life to this category of handheld devices, but other companies have picked the ball up and are running with it. Apple itself is not planning to move away from touchscreen devices anytime soon. In fact, the company has been looking for ways to improve its touch-sensitive devices. Now you can consider Amazon among those companies interested in adding touchscreen technology to their products. Amazon has recently acquired Touchco to build its own super Kindle. Considering the pressure Amazon is facing to compete with iPad who can blame the company.

Amazon’s move is certainly interesting as Touchco’s touch-technology is very flexible and can detect an unlimited number of touch-points. So the accuracy will be much better on a device that uses the technology. It will be fairly cheaper as well (video courtesy of NY Times):