Amazon has officially denied rumors that it is working on a sub-$100 version of the Kindle Fire HD. The original rumor was based on Amazon's recent 8.9-inch Kindle Fire price cut announcement, as well as an intention to compete with cheaper Chinese tablets.

As you already know, Amazon has already cut the prices of the 8.9-inch Kindle Fire by US $30 and US $100 depending on the SKU, putting the WiFi-only version at US $269 (US $30 lower) and the 4G-version at US $399 (US $100 lower). In addition to the price cut, Amazon also made the device available in France, Germany, Italy, Spain, the UK and Japan which should provide better sale numbers.

The cheap 7-inch Kindle Fire HD was going to include a 1280x800 screen, be based on the same TI chip that current Kindle Fire uses and be ready to ship later this year. According to Amazon, this simply is not happening as its devices are already at the lowest price points possible for that hardware.

Chinese tablets are believed to take quite a decent piece of the tablet market cake and it is just a matter of time before some big company wants to take a bite out of it.

More over at Electronista.com.