New rumors have emerged that Amazon's new tablet will cost $171 ahead of an event rumored to unveil the company's new product on Wednesday.

The Amazon tablet rumor turbine is turning as the suspected debut date of Sept.28 approaches.  The latest installment reported by PC Mazagine is of a $171 price tag-a big knock down from the original rumored price of $250.

The new price of $171 may sound like an odd figure but it's not all that strange for Amazon, who launched their Kindle e-reader priced $112. That said, most tech experts still speculate that the product will be priced at $250 in order to stay competitive with Nook Color, who also launched a tablet e-reader priced at $250.

While Nook color has been identified at the prime competitor of the new tablet, many anticipate that Amazon could also take a bite out of Apple, striking as a key competitor of the iPad.

Ahead of the Amazon tablet launch, Apple has reduced orders for new iPads from their manufacturers according to a JPMorganChase analyst who spoke to Bloomberg.

Current rumors suggest that the screen will be roughly nine inches and will operate on an Android system and according to the Journal it will not have a camera but will come at a rumored low price of $250 or $171.

In a similar way to how the Amazon kindle e-reader was priced low to quickly get traction among users, the company is likely to keep the price of the tablet low to attract users, Reuters reported.

An earlier experiment carried out by HP who reduced the price of its tablet from $300 to $99 after deciding to discontinue the product, shows that lower prices do bring in a large surge of consumers.

The tablet will have deeply integrated Amazon services such as Cloud Player, Instant video Player, Appstore and the Kindle App.

The success of Amazon's kindle has given the Seattle based giant a leap ahead this year after they reported a 51 per cent jump in revenues for Q2 2011 and the fastest growth in a decade, Mashable reported.

According to a report released by Forrester analyst Sarah Rotman Epps asserts that Amazon could sell between three and five million tablets in the fourth quarter if it sells them for less than $300.

Amazon has kept its lips tight about the new product, not even professing that it exists which has led to rumor turbines spinning much faster.