The new device, priced at $199, may have the biggest impact on other makers of tablets and e-readers, such as Samsung Electronics Co Ltd and Barnes & Noble Inc, maker of the Nook.
"It's a Nook killer," said Scot Wingo, chief executive of ChannelAdvisor, which helps merchants sell more on websites including Amazon.com. "And it's a very compelling offering if you're not in the Apple ecosystem already."
The Kindle Fire tablet has a 7-inch screen, free data storage over the Internet and a new browser called Amazon Silk. Amazon expects shipments to start on November 15.