Amazon's tablet that put the Android tablet market on fire is once again in the news. According to some new reports, Amazon is planning to bring out a 7-inch Kindle Fire HD tablet with a $99 price tag.

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A TechCrunch report suggests that this low-cost tablet will have 1280x800 resolution and a Texas Instrument processor, just like the $199 7-inch Kindle Fire HD.

Giving support to the rumor, TechCrunch quotes IDC's research director Tom Mainelli as saying a $99 price would not be a wrong choice for Amazon.

"The infrastructure is definitely in place for Amazon to go even lower. 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," TechCrunch quotes Mainelli.

However, an Amazon representative rejected the theory and said that the company is not going to reduce the price of the tablet to $99, as it is already at the lowest price limit of the device.

"It's not happening — we are already at the lowest price points possible for that hardware," Business Insider quotes an Amazon spokesperson.

The TechCrunch report also suggests that the 7-inch Kindle Fire HD is the best tablet product from Amazon and the 8.9-inch Kindle Fire HD is not doing well in the market.

Amazon earlier this month dropped the prices of the 8.9-inch version of its Kindle Fire HD. The Wi-Fi-only version of the tablet is available at $269 and the Wi-Fi and LTE version will cost $399.

The 7-inch Kindle Fire HD's 16 GB version is available for $199 and the 32 GB version can be bought for $249.

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