Apple set to challenge Amazon's Kindle

LONDON - Apple is thought to be working on a product that bridges the gap between the iPod Touch and its smaller laptops, in an effort to challenge the large share held by Amazon in the market for reading books and websites on the go.

Apple... planning to launch Kindle rival
Apple... planning to launch Kindle rival

The product, which is expected to use the touchscreen capabilities of the iPod Touch but will have a much larger screen, is being described by technological analysts as a "tablet", and could be on sale as early as next year.

Reports have suggested that the gadget would cost around $600, and would rival not just Amazon's Kindle product, but also notebooks being produced by companies such as Sony and Dell.

Last month, it was reported that Apple was in talks with the Vodafone-owned Verizon Wireless about a form of mobile tablet device, which would provide the technology giant with a viable telecoms partner.