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Amazon confirms it has no plans to launch a $99 Kindle Fire HD (update)

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Gallery Photo: Kindle Fire HD 7-inch hands-on photos (review)
Gallery Photo: Kindle Fire HD 7-inch hands-on photos (review)

Amazon may be expanding its Kindle Fire line of tablets with a new, low-cost version of the 7-inch Kindle Fire HD, according to a report from TechCrunch. Allegedly, this new Kindle Fire HD will have a TI processor just like its more expensive stablemates, and it will have a 1280 x 800 pixel display like the current 7-inch HD model, which sells for $199. Amazon still offers the older version of the Kindle Fire, which has a lower resolution display, for $159.

It's not clear what will be different with this new lower cost model compared to Amazon's current tablets, or when it will be available for purchase. Amazon did recently announce a price drop on its larger Kindle Fire HD 8.9, slashing the price by up to $100 depending on configuration.

Amazon has largely been considered the leader in the low-cost tablet market, but it is facing increased competition from the likes of Google with its Nexus 7 and newcomers such as HP and its recently announced Android tablet. If Amazon is able to launch a tablet that can even undercut these low cost competitors, it would give the company yet another advantage in the rapidly growing tablet market.

Update: Amazon has let The Verge know that, contrary to earlier reports, the company has no plans to launch a $99 Kindle Fire HD. "It's not happening," an Amazon spokesperson told us. "We are already at the lowest price points possible for that hardware."