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Amazon: Rumoured $99 7in Kindle Fire HD 'not happening'

Amazon has denied reports that it is prepping a $99 (£65) Kindle Fire HD.

"It's not happening - we are already at the lowest price points possible for that hardware," a spokesperson said in an email.

Rumours about the cheaper tablet got started with a report from TechCrunch. Citing unnamed sources, the blog said a $99 (£65) 7in Kindle Fire is currently in production, and will be shipping sometime this year. The device will reportedly come with a Texas Instruments processor and feature a 1,280 x 800 pixel resolution display, just like the current 7in Kindle Fire HD, which starts at $199 (£130).

The report pointed to IDC tablet research director Tom Mainelli, who said it "actually sounds reasonable."

"The infrastructure is definitely in place for Amazon to go even lower," Mainelli was quoted as saying. "If they can sell the product at roughly what it costs to build, that fits their long-term vision to make money selling you content on that device. It's entirely possible — physically possible — to create a device that costs $99, particularly at the scale that Amazon would do it."

The price drop would put Amazon in a position to better compete with the myriad of low-cost Android tablets on the market, and undercut the price of Apple's iPad mini even further. Priced at just $99 (£65), the tablet would be $230 (£150) cheaper than Apple's base iPad mini model.

The rumour comes after Amazon recently unveiled its £229 8.9in Kindle Fire HD in the UK.