Amazon.com (Nasdaq: AMZN) is introducing a new, third-generation version of its popular Kindle in August.

Fool analyst Rex Moore is really impressed with this new model for two reasons. First, you get nice improvements in technology -- including a smaller and lighter device with a higher-contrast e-ink screen, and improved battery life. Second, the prices are really coming down. The Wi-Fi plus 3G Kindle will sell for $189, while the Wi-Fi-only model will be just $139 -- close to half what Kindles were selling for less than a year ago! The $139 price is also $10 less than Barnes & Noble's (NYSE: BKS) cheapest Nook e-reader.

When the Kindle first came out, everyone was pretty skeptical about how big the market could be. Many figured early adopters and electronic geeks would take to them, but now, it seems even the most tech-averse curmudgeons have to admit -- this is big.

Amazon already sells more e-books than hardcovers, and CEO Jeff Bezos recently told USA Today e-books will pass paperbacks within a year. The point some thought would never come -- when e-books outsell all forms of physical books -- is going to be here before we know it.

Though Rex doesn't see Apple's (Nasdaq: AAPL) iPad appealing to voracious readers, its wild popularity will only add fuel to the fire. But it's these high-quality, low-price readers that are really accelerating the trend, and we'll see units under $100 sooner rather than later.

Bottom line: Anyone who was worried Amazon is not on top of things and able to stay ahead of the curve -- can now sleep better. Bezos and company are out there, pushing the envelope, demonstrating great management.

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