Amazon shares fall as new Kindle released

A new generation of the Kindle e-reader was released Thursday, promising a longer battery life, increased storage and a lower price tag.

The new Kindle design is sleeker, 21 per cent smaller than the original model and 15 per cent lighter, weighing 8.7 ounces. The company says the device now provides 20 per cent faster page turns, free WiFi, up to one month of battery life (if wireless connectivity is turned off) and the ability to store 3,500 books. It provides free 3G wireless.

The new Kindle retails for $189 US, compared to the original $399price tag that its retailer Amazon charged when it released the first Kindle in late 2007.

Amazon also introduced the Kindle WiFi Thursday, which caters to users who don't need free 3G.The $139device can only be used in WiFi hotspots.

According to Amazon, Kindle can be pre-ordered now and shipped to 140 countries and 30 territories on Aug. 27. Canada is on that list.

Experts estimate that Amazon has sold four million Kindles so far in the U.S. and will sell more than six million by the end of the year. The company has never released actual figures citing competitive reasons.

Shares in Amazon.com Inc. traded down 2.8 per cent at $122.17 Monday after the firm announced Kindle 's new lower price, down from its previous price of $259, according to Reuters.