As we told you, the Amazon Kindle 7 is rumored to cost $250 and is expected to rely heavily on the cloud, considering that only 6GB of storage is expected on the tablet. Amazon is expected to price both tablets low enough to attract buyers, even if the company sells them at a loss, making up the difference by offering apps, content and other products.
Speculation is that the Amazon Kindle 7 will come to market with no Google apps at all but will be integrated with Amazon's appstore, the Kindle store, Amazon's Video service, and the Cloud player for music. A Wi-Fi only version will first appear although Amazon is said to be negotiating with carriers for a 4G variant of the tablet. A rumor has circulated that Amazon will only release the 10 inch tablet if the 7 inch Kindle model sells well.