The Kindle Fire is a huge deal in part at least because it's so cheap. But reports that Amazon is taking a loss to make the tablet a bargain have been greatly exaggerated. The Kindle Fire is inexpensive by design.
Amazon's new Kindle Touch is $99, with the Kindle Fire tablet costing an equally preposterous $200. The $99 price point is for the Special Offers version, though, so if you need a totally ad-free reader, the no-ads version will run you $139.
This is incredible. The new Amazon Kindle Fire will cost only $199! This is a killer price for a color tablet. Even while it doesn't match the iPad's features, there's going to be some fierce competition this year.
Ryan Block at gdgt has word via his sources that the Amazon Kindle Fire—the device that can truly go toe-to-toe with the iPad—isn't the tablet they're putting their faith in. The real new hotness will be the second-gen Fire. And it's coming soon.