Barnes & Noble has announced a smaller version of the original black and white NOOK, now dubbed “The Simple Touch Reader.”

Barnes & Noble is pricing the e-reader device at $139, a price point on par with Amazon’s Wi-Fi only Kindle and which also competes with the$129 Kobo e-reader. Alongside the introduction of this new breed of NOOK (available for pre-order now, ready to ship on or around June 10), original versions of the black and white Nook will be lowered to $119 (Wi-Fi only) and $169 (3G enabled) until supplies run out.

While the price point and size (6 inches) of the all-new NOOK are the same as the Kindle, Barnes & Noble is differentiating the device on its new screen technology. The new NOOK’s touchscreen means it does not have a keyboard (instead, it leverages a touch keyboard). This extends the device’s battery life to a whopping two full months — one month more than the Kindle’s battery life after a full charge.

There’s more to this lovely screen that has pundits abuzz: it enjoys “80 percent less flashing” during page turns, according to the company. This is thanks to its cutting edge touchscreen technology, one that uses infrared to recognize and respond to finger movement as opposed to earlier touchscreen technology (called capacitive touchscreens). This trademarked, E-Ink Pearl display also allows for “crisper” resolution around text – “even in bright sun” – and provides 50% more contrast than the original NOOK.

Other NOOK specifications and differentiating features:

  • 7.5 ounces
  • 2GB storage
  • microSD slot (adds 32GB more space)
  • Wi-Fi connectivity (no 3G-enabled version will be available)
  • Built off from Android 2.1 (but does not support any Android apps)

The Nook offers access to over 2 million eBooks made available thanks to Barnes & Noble’s partnerships with over 50,000 publishers. Some of these are free, and the bulk are priced around $9.99. Since it uses the most generic ePub format for eBooks, you can even use this NOOK to borrow and read books from your local library.

This smaller Nook will also support Nook Friends, which lets readers connect with friends over social networks and email – akin to an online reading club. Barnes & Noble plans to soon launch myNook.com for shopping, which will also leverage Nook Friends for social shopping experiences.

Exactly how well is Barnes & Noble competing with Amazon’s Kindle? During the announcement today of the new device, CEO William Lynch boasted that Barnes & Noble had captured 25 percent of the e-book market since releasing the first nook nearly two years ago. Curious in giving the device a test drive? Check out this demo video. You can also check out a roundup of reviews by gadget experts here.