to introduce ads to Kindle is set to show adverts on its latest Kindle, slashing the price by $25.

The new e-reader, entitled Kindle With Special Offers, will be sold for $114 (£70), $25 less than the current lowest-price model. It will be available from 3rd May at Best Buy Co. and Target Corp stores, in addition to Amazon’s site, Bloomberg reports.

Jeff Bezos, founder and c.e.o, said: "We're working hard to make sure that anyone who wants a Kindle can afford one.

"Kindle with Special Offers is the same bestselling Kindle—and it's only $114. Kindle is the best deal in consumer electronics anywhere in the world."

The ads will appear on the device's screensavers and at the bottom of its homepage, but will not interfere with reading by appearing in Kindle books.

General Motors Co’s Buick, Procter & Gamble Co’s Olay skin products and Visa Inc will be among the first advertisers on the Kindle.

Amazon also will put its own promotions on the device, offering readers a $10 gift card for $20-worth of merchandise on its site or 50 percent off a Roku streaming-video player.

Jay Marine, director of Kindle products, told Bloomberg: "Every time we’ve been able to make Kindle more affordable, we’ve seen huge growth in demand. We expect the same to happen here."

The Seattle-based company introduced the first version of the Kindle for $399 in late 2007 and dropped the price to as low as $139 after a series of price cuts from 2008.

The device has become Amazon’s most popular product and will bring in $5.42 billion in revenue this year, according to Caris & Co.