Amazon Kindle Fire tablet to sell for $199

The Fire will connect to the Internet via WiFi, but does not feature 3G connectivity, it is also missing an onboard camera or microphone. Amazon Chief Executive Officer Jeff Bezos also unveiled the Kindle Touch, an e-reader with no buttons and a touch screen starting at $99, along with a basic Kindle e-reader at a new price of $79. The Fire runs a version of Google Inc.’s Android software, used by other iPad wannabes, and will have access to applications through Amazon's Android store. Unlike the iPad, the Fire doesn't need to be backed up on a PC. Instead, it backs up its contents wirelessly on Amazon's servers. At $199, Amazon is likely subsidizing the cost of the tablet, on the expectation that it will make the money back when owners buy things through the tablet. That might allow the company to undercut Apple on price, something other manufacturers have had a hard time doing. Apple's profit margin on the iPad, which starts at $499, is lower than it is for many of its other products, particularly the iPhone.