Amazon has just announced a new Kindle, which can now be ordered for just $139, if you don’t need the 3G feature, which adds $50 to the reader. It may be the first time, ereaders are truly affordable for the mass market as they move away from the $200 mark and close in on $100, what is potentially the sweetspot for e-readers. Amazon refuels the pricewar in ereaders, while it also effectively defending itself against Apple’s move into ereaders with a substantially more expensive iPad. Which could work out well for Amazon, if it does not loose track of current trends and Apple’s strategy.

There is a certain fear in the tech industry when Apple is introducing new products. Apple may just take over your business segment like it has done with the iPod and the iPhone or capture an entirely new market with products like the iPad that can affect other product segments as well. What we have seen is that this fear generally leads the industry into follow and copy Apple strategy, which is often driven by the fear that you will simply drown if you don’t do what Apple does. Or you may see an opportunity to join others in Apple’s tail wind and pick up the scraps Apple leaves behind. We have seen that with the iPod, the iPhone and most recently with the iPad.

However, Apple’s rivals are getting better and they learn to take advantage and possibly outrun Apple at some point. HTC, for example said earlier today that it increases its production capacity of Android phones to 3 million units per month in the current quarter. Unit shipments are anticipated to reach 6.5 million phones this quarter, which is not that far behind Apple. And the latest Kindle, is one more sign that some companies that are challenged by Apple aren’t rolling over and accept that their territory is invaded.

The latest Kindle is available in $189 (3G) and $139 (Wi-Fi) flavors, comes with a 6” bistable (e-ink) screen that now offers 50% more contrast, the capability to create shades of grey and can run for up to 10 days without recharging. The storage capacity is about 3500 ebooks. The sharp price cuts indicate that Amazon is shifting the price war from hardware profits to ebook sales, which makes sense as the company now sells more ebooks than hardcovers. You can order the new Kindle now (it will ship on August 27) for $10 less than Barnes&Noble’s WiFi Nook and for just about one third of the price of the cheapest iPad or exactly 20% of the average selling price of the iPad ($695).

Since the iPad is really a jack of all trades and does many things, but does just a few things very well, the Kindle remains the far better offering as an ebook readers for now. If it is about reading a book, the Kindle is more compact, lighter and more readable than the iPad. It is cheaper and it won’t overheat.

However, beyond that, the iPad is building a value proposition Amazon can’t lose track of and customers should be aware of. Ebooks are unlikely to remain what they are today. There is a notable chatter and evolving trend toward media-rich ebooks that will require a color screen, web browsing capability as well as media playback features. The Kindle does not have the reputation of a rich media device. It’s a relatively simple, but very effective ereader. The lead Amazon has in ebook sales could be invaluable to drive rich media books, if Amazon can ignite the rich media trend and a capable ereader in the near future. It could be a hard hit against Apple. Apple still needs to learn the ebook business. Amazon knows it, Barnes&Noble knows it.

It will be up to Amazon and Barnes & Noble how much Apple will take of the ebook business. Amazon shows that it is not giving up yet or moving to copy Apple. However, Amazon will need a rich media ebook reader at some time. Conceivably, that could be the better iPad.

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