The Inkpad Color it utilizing the second generation E INK Kaleido color e-paper technology. On a fundamental level, it still can only display 4,096 colors and 100 PPI. What has changed is the color accuracy and gamut, colors look stunning, when compared to the previous generation. The background of manga, comics and PDF files is white, and the background of ebooks is greyscale, due to the uniformity being increased. The front-lit display has also been improved for better color production… More here.
This looks very good and in the unboxing at the above link you can see that the colour e-ink technology appears to be fully formed. Is this the next move for Amazon in the Kindle range? I wouldn’t be surprised.