A report emerged this week that Amazon is preparing a Kindle Fire HD with 7” display priced at only $99. As a comparison, the current Kindle Fire HD model is available for $199. The much cheaper Kindle tablet may share a few similar specifications including a Texas Instrument SoC and 7” display at 1280 x 800.

However, a representative denied this report saying that the company already reaches the lowest price point with the current Kindle Fire HD.

Regardless of whether the giant e-tailer will introduce a $99 tablet, it’s very clear that cheap tablets are driving the market growth. Sub-$100 tablets are currently available only from small manufacturers in developing countries and they typically come with low resolution 7” resistive display, low-performance processor, older Android version and limited internal storage.

Amazon has recently applied a price cut to its 8.9” tablet model and it now costs only $269, so at least something gets cheaper in the company’s tablet lineup.

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