The Kindle tablets just keep getting cheaper. 

The latest Amazon rumor says the company's developing a 7-inch tablet that's expected to ship this year. It'll have a TI processor, plus a 1280 x 800 resolution, similar to the current iteration of the Kindle Fire HD 7-inch. 

As TechCrunch points out, the price drop could signal one of two things: The company's either desperate to push out the rest of its e-reader inventory, which it will then cut off, or trying to move units faster.

Either way, the Kindle is facing stiff competition, thanks to Apple's iPad and the slew of Android tablets being peddled in stores like Bed Bath & Beyond and even Walgreens. As Android prices continue to fall, despite Apple keeping the iPad at a high-end $329 and up price point, Amazon will have no choice but to fall in line with the rest of them. 

[via TechCrunch]