Amazon's new Kindle Fire tablet
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Amazon Kindle Fire to enter tablet computer market

Amazon has unveiled a colour tablet computer called the Kindle Fire.

The $199 (£130) device will run a modified version of Google's Android operating system.

Until now, the company has limited itself to making black and white e-readers, designed for reading books and magazines.

As well as targeting Apple's iPad, Amazon is likely to have its sights on rival bookseller US Barnes & Noble, which already has a colour tablet.

Rory Cellan-Jones reports.