It looks like sales of Amazon's pricier 7" Android tablet isn't meeting their expectation. I've just been told that they have dropped the price. You can now find the KFHD with 32GB for a mere $229. That's $20 less than it was yesterday, and only $30 more that the base KFHD model.
This is not good news for Amazon, and it is also bad news for everyone else. Assuming that this price sticks around, Google, B&N, Kobo, Samsung, and most other tablet makers will have to drop their prices as well. The Kobo Arc and Nexus 7, just to name a couple examples, are priced to match the KFHD. Now the 32GB models will have to get cheaper otherwise the KFHD will look like a better deal.
Assuming this price is permanent, this will be Amazon's second major price cut on their new hardware. The price of the KFHD 8.9 was dropped by $100 just under a month ago.