Could we see a color-screened Kindle?

The New York Times suggests that a color screen and Wi-Fi might be in the works for the next generation Kindle, citing the job descriptions at Amazon.com's hardware unit. The Times -- which last week reported that Amazon had purchased touch-screen technology provider Touchco -- now reports that the online retailer is looking for a hardware display manager.

Among the requirements are a "deep knowledge of current display technology and potential future technologies." The description goes on to say: "Significant exposure to high volume manufacturing environments; you will know the LCD business and key players in the market."

The Times thinks that last item could be a tip off that Amazon is exploring the possibility of a color screen, something that Apple promised with the upcoming release of its new iPad.

Even more interesting, the Times' report raises the possibility that Amazon.com could turn to an open source operating system like Android to power the Kindle. That could help Amazon gain a critical mass of third party applications, while at the same time removing some of the heavy development costs associated with the device.

Meanwhile, it looks like Amazon.com could face even more intense competition from the soon-to-be-released iPad. Apple reportedly told analysts that it is open to reducing the price of the device -- which is set to range from $499 to $829 -- in order to drive demand, reports The Wall Street Journal.