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Rumor: Amazon Working on $99 Kindle Fire HD 7-inch [Updated]

Talk about getting bang for your buck. Amazon is reportedly working on a new version of its 7-inch Kindle Fire HD that will sell for just $99. The new tablet, TechCrunch reports, will still sport the same TI OMAP processor found in the current 7-inch Fire HD and will come with a similar 1280 x 800 resolution display.

The current-generation Kindle Fire HD, which is priced at $149, already undercuts $199 Google's Nexus 7 and Barnes & Noble's $199 Nook HD by $50. Dropping the price of the Fire HD would easily put it in the neighborhood of tablets from the likes of Coby and Velocity Micro, not to mention Amazon's own $199 Kindle Paperwhite.

Update: Amazon has confirmed that it is not working on a $99 Kindle Fire HD 7-inch, as the company says it already offers the lowest price possible for the hardware.

How could Amazon offer such a low-cost tablet? Easy, Amazon doesn't sell tablets with the purpose of making cash off of the hardware. Instead, the company makes its money through purchases consumers make using their tablets.

It wouldn't be completely out of the ordinary for Amazon to sell a $99 7-inch Fire HD. The company has already dropped the price of its original 7-inch HD from $199 to $159. More recently, Amazon has cut the price of its decidedly less popular Kindle Fire HD 8.9-inch from $299 to $269.

via: TechCrunch