It's confirmed, Amazon's new Kindle Fire tablet will sell for $199, according to Bloomberg Businessweek.

The new tablet is expected to compete with Apple's iPad, which starts around $499.

Amazon executives said the Kindle Fire tablet will have a seven-inch display touchscreen. It was unveiled Wednesday morning at an event in New York.

What we are doing is offering premium products at non-premium prices, Amazon CEO Jeff Bezos told Bloomberg Businessweek. Other tablet contenders have not been competitive on price and have just sold a piece of hardware. We don't think of the Kindle Fire as a tablet. We think of it as a service.

Amazon also announced it will put its original Kindle e-Readers on sale for a moderate $80.

Current Amazon Kindles with built-in Wi-Fi are sold for $139.