Amazon's New Kindle Touch: iPad Killer or Bookstore Killer? (AMZN, AAPL, BKS)

Many investors of Apple Inc. (NASDAQ: AAPL) may be worried that today marked the official launch notice of the new Kindle Touch and Kindle Fire from Amazon.com Inc. (NASDAQ: AMZN).  It is more likely that Barnes & Noble, Inc. (NYSE: BKS) should be worried.

Amazon.com is releasing new touch versions of the Kindle to go after the tablet market, but it is also announcing serious price cuts on the traditional Kindle e-readers.

The website before this announcement showed that the regular Kindle was $114 after special offers, and that the Kindle 3G was $139 with special offers, and $189 as the list price for the 3G.  It may seem amazingly priced, but the new Kindle and Kindle Touch are only $79 and $99, respectively. The $79 version clocks in at just under 6 ounces and comes with a 6 inch display.  Kindle Touch 3G is the top of the line e-reader with free 3G at only $149.

The new tablet competition comes from the Kindle Touch and Kindle Fire and the products will be on a modified version of Android and willl come with a dual core processor.  Kindle Fire comes with a vibrant color touch display in high resolution and weighs only 14.6 ounces for $199.  The Kindle Fire will be released on November 15, 2011 but orders are alread being taken.

Here are the new features from Amazon:

• 18 million movies, TV shows, songs, magazines, and books
• Amazon Appstore – thousands of popular apps and games
• Ultra-fast web browsing – Amazon Silk
• Free cloud storage for all your Amazon content
• Vibrant color touchscreen with extra-wide viewing angle
• Fast, powerful dual-core processor
• Amazon Prime members enjoy unlimited, instant streaming of over 10,000 popular movies and TV shows

Apple stock is actually up 0.3% at $400.60 today so the move is not a total wipe-out for Apple.  Barnes & Noble, Inc. (NYSE: BKS) is really the threatened position with its Noook and its shares are down over 8% at $12.13.  Amazon.com shares are up more than 3% above $231.00 today.

JON C. OGG