Rumor has it that Kindle Fire’s price may be slashed down by $50 to $150, not only to make space for a new and improved android-based Amazon tablet, a kindle’s successor, but also to let it remain competitive with some low-cost android tablets expected to hit market in couple of months time or so.

The so called low-cost tablets, which would be very impressive hardware-wise too, chiefly includes Nexus 7 — a Google and Asus product, which might launch Jell Bean Android 4.1 too with it, and is said to house a quad-core processor and 1GB RAM to impress every prospective buyer just on sight. That alone is capable of shaking the $200 tablets market, in case you hadn’t have it figured out already.

Also, Amazon is said to be working on a bigger sized follow up to Kindle Fire, with both 8.9” and 10.1” in contention, as also little bit improved resolution of 1200 x 800 pixels, while keeping the price very competitive to enjoy the similar success as it did with Kindle Fire at $200 launch price.

The $200 tablet market is sure to heat up a lot, especially because Google itself is planning to enter this space. One can expect this market segment to offer lots of 7” tablets in near future, and those looking for android tablets with bigger displays, well, the Galaxy Note 10.1 and Acer Iconia A700 deserve full attention.