Amazon is having a busy time of it just now. They have recently announced the upgrade of their tremendously successful Kindle 2.0 and Kindle DX readers and pre-order rates are currently very high. Stocks of the third generation 6” Kindle are depleted and customers are now pre-ordering to get their Kindle delivered, on a first-come-first-served basis, within four to five weeks.

This latest upgrade includes a higher contrast display, more memory, quicker page turns and color choice of graphite or white . The 6” display version also has 21% smaller body and is 15% lighter, at 8.7 oz. Amazon has also released an entry level Wi-Fi only model of the 6" display Kindle for customers who do not have need of a 3G connection.

All of this is accompanied by a price drop. The 6” Kindle version Wi-Fi only model retails at $ 139, with the 3G plus Wi-Fi model on sale for $ 189. The large format Kindle DX version is now available for $ 379. These represent significant price cuts when compared with the Kindle 2.0 launch $ 359 price and the previous DX price of $ 489.

A lot has been made of the potential impact of the Apple iPad on Kindle reader sales figures. It seems likely that the launch of the Apple iPad has prompted, or at least hastened, the latest round of e-book reader price reductions. However, the above prices are considerably lower than the entry level iPad price and, for a lot of customers, the fact that 3G is available with no monthly fee will be seen as a very positive aspect of the Kindle price plan.

Over and above the various upgrades to the hardware and the reduced prices, a dedicated UK Kindle store will be opened. Consumers in the UK will no longer require to have their Kindles shipped across the Atlantic. The UK Kindle store opens in August 2010 and will, initially, have approximately 400,000 Kindle books to choose from. It seems reasonable to assume that other Amazon websites may well have their own Kindle stores before very much longer and that customers will be able to source their Kindles locally.

The recent price drop in the e-book reader market could well be a sign that the market, whilst still relatively young, is entering a new phase in its development. Reduced hardware prices will change the emphasis from hardware sales towards the sale of the e-books themselves. Amazon, who have an interest in both hardware and book sales may be better placed than companies who are chiefly concerned with hardware manufacture and sales. Whatever the future brings, and it seems likely that the future of reading will have a strong digital element, Amazon seem likely to remain a very influential player in the development of the market.