A cheaper version of the device will include advertisements on the homepage and screensavers.

Amazon has announced that it is going to sell an ad-supported version of the Kindle for $114 from May 3rd. That's a saving of $25 compared to the current cheapest it offers. This drop in price is offset by the presence of ads on the home screen and screensavers, however, they will not appear within the e-books themselves.

This new Kindle will feature special offers such as a $20 Amazon.com gift card for $10, $1 for an album in the Amazon MP3 store, and $6 for 6 audio books. New offers will be regularly sent to the device. Companies such as Buick, Olay, Visa and Chase are launch partners and will have specially designed screensaver ads. Users can preview and vote on future designs through the new AdMash app and website.

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