Considered the “big screen” model in the Kindle family that started as an ebook reader, the Kindle Fire HD sports an 8.9-inch display.
At the low end of Amazon’s tablet family is the Kindle Fire, which has a smaller 7-inch display and launched a bit of a price war when it was released in late 2011 at $199.99, a price later matched by Google with its 7-inch Nexus 7 tablet.
Amazon’s VP for Kindle, Dave Limp, said the company was able to drop the price thanks increased production volums and decreased costs.
“Across our business at Amazon, whenever we are able to create cost efficiencies like this, we want to pass the savings along to our customers,” he said.
The 4G version of Kindle Fire HD remains priced at $399.
Unlike Apple which counts on high profit margins for all its products, Amazon keeps the Kindle’s profit margin close to the bone. Amazon profits indirectly from Kindle sales because the device helps it sell more goods and services via its online store.