Amazon Launches $139 Wi-Fi Kindle

Amazon has launched a $139 Wi-Fi-only Kindle, hoping to stay ahead of competitors by luring customers with low-priced e-readers that the online retail is betting will drive digital book sales.

Amazon on Thursday also introduced the third generation of the original Kindle, which has Wi-Fi and 3G wireless technologies. The latter makes it possible to buy digital books from Amazon and download them in less than a minute. Amazon kept the price for the device at $189.

Both Kindles are about $10 less than comparable e-readers from rivals Barnes & Noble, Borders and about $30 less than Sony's device, excluding the $25 e-book gift card Sony gives with each purchase.

Besides lower prices, the latest Kindles have several improvements over previous generations. While the size of the screen remains six inches diagonally, the display is based on manufacturer E Ink's latest technology, which offers a contrast ratio about 50% greater. While the screen only displays black-and-white, its high resolution makes it possible to read text even in direct sunlight, an advantage over the LCD displays used in Apple's iPad and smartphones.

In addition, Amazon has made the Kindle 21% smaller through a sleeker design and has reduced the weight by 15% to 8.7 ounces. The latest models have a battery life of a month and twice the storage, which is enough to carry up to 3,500 digital books.

While Amazon has prepped the latest Kindles as stiffer competitors, the retailer won't be able to start shipping the e-readers until Aug. 27. Amazon suspended shipments on Wednesday, but is taking pre-orders.

Nevertheless, Amazon is making the Kindle available in time for the back-to-school shopping season. The retailer is also pressuring competitors to lower prices, as the industry moves closer to offering devices possible as low as under $100, which analysts say would be low enough to be a compulsive buy for consumers.

Amazon's latest releases reflect an industry shift toward making money on the sales of e-books instead of the e-readers, since the lower prices are meant to get the devices in the hands of potential book buyers.

This strategy is apparently working for Amazon. the company this month announced that unit sales of e-books surpassed that of hardcover books. On Wednesday, Amazon said Swedish author Stieg Larsson has become the first writer to sell more than 1 million digital books on Amazon. Larsson is the author of the bestselling "Millennium Trilogy."

The growth rate of e-books sales for Amazon has been impressive, given that digital books overtook hardcover books in less than three years. Amazon has been selling hardcover books for 15 years.

However, competition could get tougher, not just from other e-readers, but also from the emerging category of tablet-style computers, such as the iPad. While the Apple computer starts at more than $300 more than the cheapest Kindle, it does considerably more besides acting as an e-reader. The device also surfs the Web, accesses e-mail and plays video, music and games.

India unveils prototype for $35 touch-screen computer

The Indian government has unveiled the prototype of an iPad-like touch-screen laptop, with a price tag of $35 (£23), which it hopes to roll out next year.

Aimed at students, the tablet supports web browsing, video conferencing and word processing, say developers.

Human Resource Development Minister Kapil Sibal said a manufacturer was being sought for the gadget, which was developed by India's top IT colleges.

An earlier cheap laptop plan by the same ministry came to nothing. The device unveiled on Thursday has no hard disk, using a memory card instead, like a mobile phone, and can run on solar power, according to reports.

'Manufacturer interest'

It would cost a fraction of the price of California-based technology giant Apple's hugely popular iPad, which retails from $499.

Mr Sibal said the Indian tablet, said to run the Linux operating system, was expected to be introduced to higher education institutions next year.

The plan was to drop the price eventually to $20 and ultimately to $10, he added.

Unveiling the gadget, the human resource development minister told India's Economic Times it was India's answer to the "$100 laptops" developed by the Massachusetts Institute of Technology in the US.

"The solutions for tomorrow will emerge from India," he said, reports news agency AFP.

Last year, the human resource development ministry was criticised after one of its officials announced it was about to unveil a $10 laptop, triggering worldwide media interest.

But there was disappointment when the "Sakshat" turned out to be a prototype of a handheld device, with an unspecified price tag, that never materialised.

The ministry said it had turned to the elite Indian Institute of Technology, and the Indian Institute of Science to develop its latest device, following a lacklustre response from the private sector.

Mamta Varma, a spokeswoman for the human resource development ministry, said the gadget was feasible because of falling hardware costs.

Several global manufacturers, including at least one from Taiwan, had expressed interest in making the device, she said, although no deals had been agreed, and she declined to name any of the companies.

The project is part of a government initiative which also aims to extend broadband to all of India's 25,000 colleges and 500 universities.

In 2005, the Massachusetts Institute of Technology (MIT) unveiled the prototype of a $100 laptop for children in the developing world, but it ended up costing about double that price.

In May, Nicholas Negroponte - of the MIT's Media Lab - announced plans to develop a basic tablet computer for $99 through his non-profit association, One Laptop Per Child.