Is Amazon moving into touchscreen territory?

Online retail giant Amazon is reportedly looking into touchscreens for an update to its Kindle eReader device.

A source has told the New York Times that the company has now bought a start up company developing touchscreens, and that it will merge the new company with its Kindle division.

The company, called Touchco, specialises in touchscreens displaying full colour, and are much cheaper than alternatives on the market.

This could be a response to the Apple iPad. Last week Apple introduced the tablet device as a direct competitor to the Kindle, with chief executive Steve Jobs even referencing the gadget in his keynote.

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