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Amazon Unveils $199 Kindle Fire Tablet [Video]

Amazon has unveiled its new 7-inch Android-based tablet, with the “Kindle Fire” tablet / service.

The Kindle Fire will have a 7-inch display and sell for $199, compared with $499 for Apple’s cheapest iPad, Amazon executives said. The device will run on Google Inc.’s Android software.

In a separate interview with Bloomberg, Amazon CEO Jeff Bezos contends that Amazon’s edge in the tablet market is price.

What we are doing is offering premium products at non-premium prices,” he says. “Other tablet contenders “have not been competitive on price” and “have just sold a piece of hardware. We don’t think of the Kindle Fire as a tablet. We think of it as a service.”

The Kindle Fire offers Wi-Fi connectivity and a 30-day trial of Amazon Prime, the company’s $79/year service that offers streaming video and free two-day shipping on most items purchased through Amazon. The tablet does not offer 3G connectivity, camera, or microphone.