All the speculation is over as Amazon officially announced today new Kindle, Kindle Touch, and Kindle Fire with rather aggressive pricing.
All the new e-ink models feature Wi-Fi and smaller, lighter bodies. The low-end Kindle model now starts at $79 for an ad-supported model, $109 ad-free. The Kindle Touch starts at $99 for the Wi-Fi model ($139 ad-free) and $149 for the 3G model ($189 ad-free). As for the much ballyhooed Kindle Fire: a very attractive price of $199.
Amazon will clearly move a lot of devices at these prices... and at a loss. The profits will come from the e-books, music, movies and whatnot they manage to sell to the device owners. More thoughts later.