There's a new tablet in town and this one's only $199.
At a packed press event in New York today, Amazon unveiled its new tablet, the Kindle Fire. Executives told Bloomberg Businessweek the tablet is a "souped-up version" of its popular Kindle E-reader.
The Fire will be shipped beginning Nov. 15 and is the latest attempt to compete with Apple's iPad, which starts at $499. The new tablet is smaller than the iPad at only 7 inches in diameter, will run Google Inc,'s Android software and at $199 significantly undercuts Apple's pricing.
"We're building premium products at non-premium prices," Amazon CEO Jeff Bezos said during the press conference.
The Kindle Fire offers users a touchscreen, dual-core processor, unlimited data storage via a free storage cloud and access to 18 million movies, songs, magazines, books and TV shows through amazon.com.
Bezos told Bloomberg Businessweek, however, that he's confident the new Kindle Fire will compete better against the iPad than past products created by Hewlett-Packard and Blackberry maker Research in Motion 's did.
Janney Capital Markets analysts predict that the Kindle Fire will ship between 2 million and 3 million tablets in the fourth quarter.
Bezos also revealed a set of three new E-readers, the non-touch model starting at $79. A drastic price cut from the previously lowest-priced Kindle, which sells for $114, the Kindle Touch E-reader, which has no buttons, but has a new touch screen system with a tap-menu touch zone on the top, will cost $99. The new top-of-the-line Kindle touch with 3g will sell for $149.
Before the new Kindle Fire was even announced, Amazon shares rose $8.59 to $232.80. Apple shares rose $3.46 to $407.72.
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