Amazon is set to drop the current prices of the Kindle Fire tablet in preparation of a new 7-inch and 10.1-inch tablet, according to industry sources familiar with the situation.
The company is expected to slash the price of the Kindle Fire by $50, reducing the cost from $199 to $149. This will essentially prepare them for the arrival of two new Kindle Fire tablets.
Sources report that Amazon will release a 7-inch later this year that will sport a $199 price tag as well as a screen resolution of 1280 x 800. This model will allegedly have better specs than the Kindle Fire which currently features a 1024 x 600 screen resolution and lacks a camera.
Along with the 7-inch tablet, Amazon is rumored to be developing a 10.1-inch tablet to be released at the end of 2012 or in the beginning of 2013. It can be assumed that the larger Amazon tablet will be launched in order to compete with the market-leading Apple iPad.
These reports are coming in from DigiTimes, so as usual, please take them with a large grain of salt. That said, Amazon will launch a new Kindle Fire, probably sooner rather than later. In addition, rumors of a 10.1-inch Kindle Fire have been floating around since the original launched.