The source of this story is DigiTimes, which is the main reason we filed this one under "rumor." Still, the info seems to line up with other industry intel we have been hearing, so it is definitely worth taking a look at. Supposedly, the price of the Kindle Fire will soon drop by $50 dollars to $149.99 in preparation for the impending arrival of two new Kindle Android tablets in the third quarter. One of these new tablets will supposedly be the 10-inch variant we have heard rumors about for quite some time, although it is also possible that this may get pushed back to the fourth quarter or the first quarter of 2013. The other is apparently a refreshed and upgraded version of the current 7-inch Kindle Fire and will take its place in the $199.99 slot. This will allow them to offer deeper market penetration with multiple choices for consumers.
Also, this same report suggests that Amazon may simultaneously have their European launch of the Kindle Fire and these variants. It seems that Amazon intends to press forward with the phenomenal success of their entry into the Android tablet market.
Source: Kindle-FireForum via DigiTimes