Retailing at £79, the entry level device has seen its keyboard removed, while the new version will be made available in the UK at £89.
Furthermore, a version of the Kindle with limited capability will sell in the US for $99.
"These are premium products at non premium prices," Jeff Bezos, Amazon chief executive, commented. "We are going to sell millions of these."
In other industry news, Nokia confirmed earlier this week that its new N9 handset has begun shipping to customers and stores.
Ilari Nurmi, vice-president of marketing at Nokia, explained that the new device is specifically designed for consumers who appreciate exceptional design and cutting-edge technology.
The Nokia N9, he said, represents the "first in a number of products from Nokia that will be brought to life in similar fashion".
Posted by Simon Jones
