Bloomberg reports that the Kindle Fire tablet will retail for $199 and features a 7-inch display. With its low price and the well-known Kindle brand, analysts believe Amazon's product could represent the first legitimate competitor in an area where many other high-end Android tablets have missed the mark.
This is also the first Kindle that isn't a pure e-reader. The Kindle has been instrumental in driving sales of digital books and brought e-readers into the mainstream despite earlier efforts by Sony. The catalyst for its success has been its low-powered e-ink technology, which enables users to read the device from anywhere, as well as the ease in which a person can buy a digital book over the air.
Another smart move: Amazon's decision to create apps on other devices such as the iPad and Android phones, allowing people to read their books on any device, but still stick with the Kindle library.
For more on this story, read Amazon's Kindle Fire tablet to sell for $199, report says on CNET News.