Amazon has released a new version of its massively popular ebook reader, the Amazon Kindle DX.

And although Amazon has improved upon the previous model with a better display, the price has been slashed by $110 to $389.

The new Kindle DX features a 9.7-inch screen, along with a new graphite enclosure and an improved, higher contrast, electronic ink display that promises a 50 per cent boost to the contrast meaning sharper text and images.

"With 50 percent better contrast and darker fonts, you'll find it easier than ever to read wherever you happen to be, whether it's outside in bright sunlight or under the low light of your living room", said Steve Kessel, senior vice president, Amazon Kindle.

"We're excited to offer the new Kindle DX with free 3G wireless at the lower price of $379".

The new Kindle DX is bound to be an attractive prospect not only to existing Kindle users who are looking to upgrade, but also to people who want to get in on the ebook revolution.

However, despite the reduced price, the $120 extra you'd pay for the lowest level iPad in the states would give you a far more feature-rich device. Even reading ebooks from the Kindle store on an iPad is better than reading them on a Kindle, now that the app features embedded audio and video.

Amazon is relying on the fact that people may not want to spend long periods of time reading ebooks using a device with a bright screen like the iPad.

Only time will tell if this assumption is enough to keep the Kindle hardware alive. Looking at Amazon's Kindle app for iPad and iPhone, maybe even it isn't sure it will be.

The new Amazon Kindle DX is out 7 July. You can pre-order one from Amazon now.

Check out Amazon's promo video of the new Kindle DX as well: