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Acquisition of touchscreen specialist raises hopes of an iPad rival

Amazon to upgrade Kindle?

Rumours are arising that Amazon may have a new version of the Kindle in the works, after reports that the e-tailer has bought a touch screen developer.

According to the New York Times, Amazon bought the New York-based start-up and will merge its products and staff in to its Kindle hardware division.

Touchco is reported to have been working on a touchscreen that can detect an unlimited amount of contacts and can distinguish between the touch of a finger and a pen or stylus.

Additionally, Touchco designed its technology to work with colour LCD screens similar to those used in the iPad and HP’s tablet.

“If touch screens were added to the Kindle or other Amazon devices, it would bring them up to date with the plethora of other screens consumers are becoming used to,” Lazard Capital analyst Colin Sebastian told the NYT.

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