Amazon (AMZN) drops the Kindle Fire HD’s price to $159.99 from $199.

The price drop is probably less about offering discounts and more about clearing inventory. Amazon is likely dropping the price on the Kindle Fire HD to make room for a new Kindle. The company has refused to confirm details on the new tablet, but rumors claim that the Kindle Fire HD successor will run off of the new Qualcomm (QCOM) Snaprdragon processor and Google’s (GOOG) Android operating system. A release date hasn’t been set for the new Kindle, but it will likely come out this fall to compete with Apple’s (AAPL) newest iPad, reports Headlines & Global News.

The Kindle has competition from Google.

Google released a new version of its Nexus 7 in July. The 2013 Nexus 7 runs off of Android’s Jellybean operating system, has a 7-inch 1920×1200 HD display, is powered by a 1.5GHz Quad Core Qualcomm Snapdragon processor and has 2 GB of ram.