There's no word yet on how long these prices will stick around, but now that Amazon has lowered the price pretty much everywhere (the KFHD is even on sale in Japan, though not in India) I suspect that this is the new permanent price.
Amazon has in the past lowered the price of their hardware, and while we don't always know why it is usually safe to guess that sales weren't meeting expectations. In fact, the Kindle Fire tablets have seen several price cuts since they launched last Fall, including a deep price cut on the 8.9" model as well as a couple price reductions on the KFHD 7" 32GB model (now only $199 in the US).
Does anyone else see the pattern here?
In the space of ten months Amazon has lowered the price on their hardware, expanded availability, and then lowered the price again. Something tells me that the sales aren't as good as expected, and that could mean that the current prices are here to stay.
One reader suggested this possibility when I wrote about the price cut that happened earlier this week, but at that time I wasn't completely convinced he was right. I had thought that Amazon was responding to the clearance sale on the Nook HD, but now that Amazon has reduced the price of the KFHD in nearly all markets that can no longer be the case.
But the reason for Amazon's price cut isn't nearly as important as the fact that they have reset the Android tablet market again. Now Android tablets are going to have to compete against a cheaper KFHD, and that will drive the prices down.
Take that new Bookeen tablet I reported on earlier this week. The Cybook tablet is priced at 159 euros, or 10 euros less than the KFHD, and that means that Bookeen's tablet is not nearly as good of a deal as it might have been only 2 days ago.
The same goes for all other tablets that have to compete with the KFHD.