Kindle Fire HD 8.9 (AMZN): Amazon cuts price of Kindle Fire, releases bigger, bolder HD versions

SANTA MONICA, Calif.  -- Amazon is updating its Kindle Fire tablet computer as it steps up competition with Apple's iPad.

It will cost $159, down from $199 for the old model. It will start shipping Sept. 14.
 
Amazon also refreshed its line of stand-alone e-readers. According to Mashable , Amazon is releasing the Kindle Fire HD in two versions: the 7-inch (like the original Kindle Fire) for $199 for 16GB, and an 8.9-inch version for $299 for 16 GB. 
 
Both will feature improved displays, with the larger version sporting a 1920x1200 resolution screen, as well as Texas Instruments OMAP 4 platform.
 
Amazon is also going to sell a 4G LTE version of the Fire HD for $499, which will include 32 GB of space. Users can get 250 MB of data a month and 20 GB of cloud storage for $50 a month.
 
The Fire is an effort to take a larger share of a tablet computer market dominated by Apple's iPad. It could help Amazon.com Inc. boost sales of digital goods such as e-books and movies.
 
The announcement was made at a former airplane hangar in Santa Monica, Calif.
 
Amazon has pursued the strategy of selling lower-priced tablets at razor-thin, if any, profit margins in order to boost sales of digital items from its online store. The Kindle Fire has a smaller screen than the iPad.
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