The Kindle, which was updated last month, costs US $359.00. Amazon says it has a library of more than 240,000 eBooks for sale. Today they’ve released a iPhone Kindle application that will allow you to read all the books available in the Amazon Kindle store.

However as the app doesn’t make a direct connection to the Kindle store, you will need to use mobile safari or any browser to actually buy the books. Books you have already bought for your kindle will be transfered with easy to your iPhone/iPod Touch.

One of the advantages of the Kindle app is that you will be able to see color illustrations in books, something not possible on the Kindle hardware, which only shows images in shades of gray.

Amazon has been working on the application for several months, said Ian Freed, who is Amazon’s vice president for the Kindle. Freed said the company sees the software as a way to introduce non-Kindle owners to the device, potentially turning them into Kindle buyers. (Amazon does not say how many Kindles it has sold.) It also gives Kindle owners an additional way to read their content while on the go, he said.

Price : FREE

Direct iTunes Link (Only in US APP STORE)