This past week, Amazon made it a little easier for iPad users to access the Kindle Store. You probably already know that Apple enforced a policy earlier last year that prohibited iOS apps from integrating in-app links to third-party web-based stores. Thus, Kindle mobile app users now cannot link to the Kindle Store from within the app itself.
But now Amazon’s iPad-optimized Kindle Store app, officially called Kindle Cloud Reader (see below), provides a better browsing experience than if you link to the regular version of the Kindle website.

This iPad-optimized version is not an app you download it from the iTunes App Store. Instead you get it by going here on your iPad and then adding it as a bookmark on your device’s home screen.

The iPad web version also links you to your downloaded Kindle books – the same ones that appear in your Kindle Reader app. To access your Kindle books, tap the Cloud Reader button in the top-right side of the page. Likewise, your Cloud Reader can be accessed from any computer-based web browser as well.
Interestingly, however, while you cannot make annotations to books in the Cloud Reader, you do get a better view of listed links to highlighted passages and bookmarks you make in the Kindle Reader.

It’s unfortunate that Amazon can’t provide all of these features in one mobile app, but for dedicated Kindle and iPad users, the Web-based version is a useful resource.
Source: Macworld
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Actually, this has been out for a while now. Ever since Apple disallowed ebook apps to have connections to their online stores.
I would guess these news are at least a couple months old.
Antriksh, I thought the same thing. But I think what was added was the direct link and optimization through iPad. I’ve had the Cloud Reader on my iPad for a few months as well, but I never used it. However, it does look like it was updated. Plus I don’t think you could originally read your Kindle books through the app. But hey, I could be wrong. The story ran as recent news on several sites, in addition to MUO.
I don’t use Cloud Reader anymore, but you could read books on it since it first came out. Hence the name.