Still in the market to buy a tablet but not sure what to buy? Well the Kindle Fire may be dropping soon for a decent price. Check out the details on the Kindle Fire price drop after the jump.

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As Amazon is said to be considering launching new e-book readers and 7-inch tablet PC products at the beginning of the third quarter, the company is expected to have a chance to reduce its existing 7-inch Kindle Fire pricing to US$149 to help transition to the upcoming new tablet PC products, according to sources from the upstream supply chain.

To expand its market share, the sources believe that Amazon has a high chance of adopting a similar product strategy to Apple, in addition to a new iPad product, Apple continues to sell its previous model at a cheaper price to expand market share into the lower-end segment.

Therefore, the sources expect Amazon to release a new 7-inch tablet PC with a screen resolution of 1280 by 800 and a price of US$199, in the third quarter, targeting the higher-end segment, while releasing another 7-inch model with similar specifications as the existing Kindle Fire, featuring a screen resolution of 1024 by 600 and a price of US$149. This model will be mainly pushed into the entry-level segment to expand the company’s market share, noted the sources.

Kindle Fire’s consumer-friendly price and functions allowed Amazon to achieve sales of 4.5-5 million units in the fourth quarter of 2011; however, because the device is mainly targeted at the US market, sales quickly dropped to only 700,000-800,000 units in the first quarter of 2012.

In addition to 7-inch tablet PCs, Amazon is also said planning 8.9-inch and 10.1-inch models; however, the latest information shows that the company has already halted the development of the 8.9-inch model with the 10.1-inch set to be released in the fourth quarter of 2012 or the first quarter of 2013.

As for e-book readers, Amazon is currently developing a 6-inch backlight-unit-module-integrated model that is set to launch in the third quarter at the earliest, noted the sources, adding that Amazon will also release e-book readers with other sizes in the second half of the year.

DigiTimes