Amazon’s Kindle fire tablet launched for $199 after much waiting. The kindle fire costs $199 and will run on modified version of Google’s Androd operating system which may prove as the latest and biggest challenger to Apple Inc.’s dominant iPad. The tablet has a 7-inch screen and can access Amazon’s app store, streaming movies and TV shows. The sales start from Nov 15 and the pre-orders started from 28th September.

Amazon’s CEO Jeff Bezos said during the launch, “We asked ourselves, Is there some way we can bring all of the things such as web service, Prime, Kindle, instant video and its app store together into a remarkable product offering customers would love. Yes there is Kindle Fire.”

Bezos said that most of the content is backed up in the cloud, and that the device features wireless synching. Though it has a dual core processor and is 3G enabled, it lacks other features like camera and a microphone. Fire includes an IPS display, an ultra-wide viewing angle, and fast dual-core processor

Kindle Touch e-book includes an advanced E Ink display, infrared touch interface, extra long battery life and access to millions of e-books, free storage in the Amazon Cloud, Audible integration including a feature known as X-Ray, which shows the “bones” of a book or details.

So far, iPad rivals like HP’s touchpad, Research in Motion’s Playbook, Samsung Electronics Co. Ltd.’s Galaxy Tab and Motorola Mobility Holdings Inc.’s Xoom have failed to attract mass audiences.

For Amazon, its relationships with its users could be its biggest advantage and also the smart pricing might help them.

The cheapest new Kindle will cost $79, and dispenses with the keyboard the Kindles have carried since the first model launched in 2007. Previously, the cheapest Kindle cost $114.

Amazon is also bringing out the first black-and-white Kindle with a touch screen. It will cost $99 and is reminiscent of Barnes & Noble’s latest Nook. A version with access to AT&T’s cellular network for book downloads will cost $149.

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