Amazon is planning to issue a new version of its Kindle ebook reader aimed at the education sector, according to an analyst report.

Tim Bueneman, an analyst with McAdams Wright Ragen, told the Seattle Post Intelligencer that at a meeting with management it had been indicated that the company would introduce a new, stripped down, Kindle reader aimed at college and schoolchildren.

"There are already several new, improved versions of Kindle in the works," he wrote.

"But Amazon has no plans for an MP3 music audio version. We guess the new version will have improved interface operating controls. This has been an issue with some buyers. "

The move would allow Amazon access to the billion dollar education market in the United States and would also be attractive to colleges, since storage and upkeep of text books is a major drain on budgets.

Amazon isn’t releasing sales data on the Kindle but some analysts have put the number of units shipped at over a third of a million. Bueneman said the company said it had not been consulted on those figures.