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New Amazon Kindle Fire Tablet to Rival iPad Inc. announces its new tablet is already available for pre-order.

Courtesy of
Courtesy of Inc. revealed Wednesday morning the new Kindle Fire, a tablet that is half the price and size of Apple's iPad tablet.

The Kindle Fire will feature a 7-inch display and sell for $199, compared to Apple's iPad which retails at $499, Amazon executives told Bloomberg News.

The device is said to be a souped-up version of the Kindle electronic-book reader that will run on Google Inc.'s Android software, the Seattle-based company said.

Chief Executive Officer Jeff Bezos is betting he can challenge Apple's iPad by leveraging Amazon's dominance in e-commerce after tablet rivals Hewlett-Packard Co. and Research in Motion Ltd have fallen short.

Since the announcement, shares jumped more than 3 percent Wednesday morning.

The tablet is expected to feature touch-screen technology, a custom version of the Android operating system and access to Amazon's app store, streaming movies and TV shows.

The Kindle Fire will also have to compete with Barnes & Noble Inc.'s Nook, a low-cost e-reader that features color screen and Internet capabilities.

The device offeres Wi-Fi connectivity, though not 3G access. It does include a 30-day free trial of Amazon Prime, the company's $79-a-year membership service that includes streaming video and free two-day shipping.

On Monday, Amazon increased its media offerings by striking a partnership with News Corp.'s Fox unit that places network shows on the Prime streaming service.

The Kindle Fire will be the fourth Kindle released by Amazon, Inc. The original Kindle now retails at $79.

Bezos outlines all of the newest Amazon features in a letter on the front page of

The Kindle Fire is already available for pre-order. The company's website says the tablet will be released on November 15, 2011. Orders are prioritized on a first come, first served basis.

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