As expected, Amazon (NASDAQ: AMZN) unveiled its new Kindle Fire tablet this week. Essentially a branch of the Android operating system, the Kindle Fire comes equipped with a 7-inch multi-touch display, 8GB of memory and Wi-Fi for wireless--all in a tablet weighing a mere 14.6 ounces (413 grams). You can read about its full technical specs at the Kindle Fire product page.

One aspect that everyone agrees is amazing is its extremely low price tag, at $199.99. At least one analyst has estimated that this represents a loss of $50 per tablet for Amazon, prompting a comparison of Amazon's strategy with how Gillette sells razors.

Ultimately, the price serves as a clear confirmation that Amazon intends to leverage the Kindle Fire as a vehicle for sales of its e-books, music, movies and apps.

While it remains to be seen whether the Kindle Fire could pose a threat to the much more expensive iPad, the price could well sway users still on the fence about getting an iPad--or maybe even persuade existing iPad owners to get a second tablet.

In addition, while the Kindle Fire does not run on Android Honeycomb and hence does not compete directly against other Android tablets, its pricing strategy can only serve to put pressure on other tablet makers to depress their prices even further. The Kindle Fire is available for pre-order now, and will ship November 15. Will you be getting one?

For more:
- check out this article at PC Magazine
- check out this article at eWeek
- check out this article at CNET News

Related Articles:
Amazon's Kindle tablet will have a 7-inch touch-screen with deep integration
Amazon expected to unveil Kindle Fire tablet tomorrow
Against all odds, eBook readers thrive
As tablets go cheap, expect influx in enterprise