Earlier today, a report indicated that a very inexpensive version of the Amazon Kindle Fire HD is in production. An Amazon spokesperson has new categorically denied this story.
Update: The spokesperson told The Verge, "It's not happening. We are already at the lowest price points possible for that hardware."
The current Kindle Fire HD with 7-inch display sells for $200 with 16GB of internal storage. The upcoming model will reportedly have some features in common with this, including a 7-inch, 1280x 800 touchscreen.
[click to view image]What changes will be made to this device to lower the cost even further are not yet known. Some possibilities include less internal storage, or leaving out the camera.
Amazon's tablets run a heavily-modified version of Google's Android operating system, and the upcoming one surely will too. The current Kindle Fire HD has a 1.2 Ghz dual-core processor.
Why So Cheap?
Amazon's prices for its current tablets are so low because the company does not need to make a profit off selling the hardware. These devices are strongly tied to Amazon's stores for software, music, and video, and it makes its money from selling these to customers.
It's possible the $99 version of the Kindoe Fire HD might be sold below its cost just to encourage more people to buy one... and start shopping for games, songs, and movies.
Source: TechCrunch, The Verge