kindle fire hd 7 inch 08 640x480The other day we reported that according to the rumor mill, Amazon could be priming themselves for a release of a $99 Android tablet. Considering that the Kindle Fire was Amazon’s first Android tablet and one of the cheapest at that time, this rumor wasn’t completely out of the question, although it did sound too good to be true. Alas it really was because in a statement Amazon released to The Verge, Amazon refuted those rumors, claiming that a $99 tablet is not happening since they are already at the lowest price points possible for the hardware.

When the Kindle Fire was first announced, many were wondering how Amazon was able to price it so cheap. It turned out that every Kindle Fire Amazon sold was at a loss, but we guess Amazon was banking on customers purchasing content from them to cover their losses, such as music, games, and e-books. Taking this into account, we guess it is understandable that Amazon might be having a hard time hitting that $99 mark, but we’re guessing that if they could they probably would, just to cut out the competition from the likes of Google’s Nexus 7.

Filed in Tablets . Tags: Amazon and Kindle Fire. Source: maximumpc
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