Will Amazon Take the E-Reader Where It’s Never Been Before?

Amazon.com Inc.’s (NASDAQ:AMZN) popular Kindle e-reader may be available in color as early as the second half of 2012, according to reports from Digitimes.

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The new Kindle is expected to use EPD panels, which means new color Kindles will not have LCD displays. A color Kindle would put the device in a new space, not quite a tablet but not quite a traditional black and white e-reader, both spaces where pre-existing Amazon devices compete well.

A new color e-reader may provide a valuable solution for users who want to read magazines or textbooks on their devices but are hesitant to spend $200 on Amazon’s tablet, the Kindle Fire.

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