$99 Kindle Fire

Amazon's Kindle Fire family currently consists of the Kindle Fire ($159), Fire HD ($199) and two larger 8.9-inch tablets that cost $269 and $399, respectively. But the company may be trying to introduce an even more affordable tablet with an HD display.

TechCrunch said its sources have revealed that the online retailer has a $99 7-inch Kindle Fire in the works that will sport a 1280 x 800-pixel resolution display. That's not quite the "full 1080p HD" resolution that we've seen on a number of new high-end smartphones, but it's a pretty sharp screen for such a low price point. IDC analyst Tom Mainelli told TechCrunch that it's very plausible for the company to introduce a newer, low-priced Kindle Fire.

""If they can sell the product at roughly what it costs to build, that fits their long-term vision to make money selling you content on that device. It's entirely possible – physically possible – to create a device that costs $99, particularly at the scale that Amazon would do it," Mainelli told the news outlet.

Amazon already admitted that it breaks even on the Kindle Fire, so it would come down to component costs. The company currently makes money from the tablet after users begin purchasing books, music, videos and applications directly from Amazon's extensive ecosystem.