Can You Read Into This One? Amazon Buys Touch-Screen Startup

a report in The New York Times

Neither company has commented on the reported deal. But Touchco, based in New York, has apparently ceased operations. The company's Web site features a statement that simply reads: "Thank you for your interest in Touchco. As of January 2010, the company is no longer doing business."

The New York Times reports that Touchco began as a project at New York University's Media Research Lab and has yet to develop its technology into a commercial product. The report also states that Touchco uses interpolating force-sensitive resistance technology, which is significantly cheaper than most touch screens and can be integrated into transparent displays. In addition, the Times reports that Touchco's technology can support an unlimited number of simultaneous touch points.

The acquisition figures to play a key part in Amazon's Kindle business. As e-readers and tablets have grown in popularity and more manufacturers, such as Apple, have entered the market, Amazon has moved to defend its turf more aggressively. While the online retailer hasn't released sales figures for the Kindle, it has said that its e-readers are the best-selling item on Amazon.com and that it's currently selling six e-books for every 10 physical copies.

Amazon has moved deeper into the technology market with the Kindle as well as its Amazon Web Services (AWS) and EC2 cloud computing initiatives. While its e-reader products have been hot, its cloud computing effort may not be as sizzling; Amazon lowered prices for AWS as much as 15 percent to fend off imminent competition from the likes of Microsoft and its forthcoming Windows Azure cloud computing platform.