It was widely expected that next week Amazon would announce a 10" Kindle Fire, codenamed "Hollywood," alongside its best-selling 7" model. But on the eve of Amazon's major press conference, a new rumor has surfaced: The e-tailing giant has scrapped plans for the larger tablet, and will instead be releasing two different versions of the 7" Fire, one of which will be ad-supported.
If true, the new rumor is a interesting gamble for the company. Skipping the 10" Kindle means, effectively, that Amazon has no interest in competing with the market-leading iPad for the larger-sized tablet shopper. Instead, the company is digging its heels into the 7" market — which it has been remarkably successful in — ahead of an expected October announcement from Apple that an iPad mini is on the way for the holiday season.
Amazon owes much of its success to the Kindle's $199 price point — it's one of the most affordable tablets on the market right now, along with the highly competitive $199 Google Nexus 7. By giving you the option of viewing advertisements upon starting up the device in exchange for an even better price, the Kindle's new low price might blast the Nexus 7 out of the water. Could you be passing around a $99 Fire around the holiday dinner table this December? No one is talking specific prices yet, but don't be surprised if that's the case.
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