Amazon Acquires Touchscreen Developer Touchco

For the longest time I’ve stood behind my assertion that Amazon doesn’t want to be in the hardware business – they want to sell eBooks. I was sure that the company was content to let Apple produce the hardware that would allow Amazon to distribute their eBooks to the mythical-tablet-made-real.

After all, Amazon now offers Kindle for iPhone and Kindle for PC which will soon be followed by software for the Mac and BlackBerry smartphones. All signs point to a strategy of diverse hardware running Amazon software.

Alas, they’ve proven me wrong.

This week, Amazon acquired New York-based touchscreen developer Touchco and will merge it with its hardware division – Lab126 – which is strangely enough, located in Apple’s home town of Cupertino, CA. Touchco’s technology will enable e-ink displays to support touchscreen controls as well as on-screen keyboards.

If ever there was an indication of the battle to come, this would be it. I hope Amazon brings band-aids. As much as I love my Kindles (yes, I have a K1 and a K2) they’re going to have a hard time competing with the diversity of functions that the iPad provides, including its function as an eBook reader.

[New York Times] [Kindle]

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