The new Amazon Kindle Fire was reported by Businessweek to only cost $199. A $50 to $100 difference from earlier speculation.

The other speculations on the 7-inch device was however proven true. It doesn't come with a camera or microphone, so there would be no conferencing. There is also no 3G connectivity so don't even think you could put a sim card on the device for some wireless connection.

It does however have wi-fi. The features are more than adequate for what is supposed to be a e-book reader. The device also has 8 Gig of storage memory.

Will this compete with the iPad? Every signs point to no. This Android powered device is designed to be a very powerful e-book reader with cloud computing and web browsing in mind.

The 8 Gig memory must be only for use for cache as this device is intended to be used with Amazon's cloud storage. Treat the memory as cache or memory for Android apps. This is a device intentionally made to be tethered to Amazon services forever.

Now that Amazon has revealed the price for their new product, they have also dropped the black and white Kindle to $99.