The more powerful of the two new Kindles really needs to match the specs of the Nexus 7:
- 16GB= $249
- 8GB= $199 (??? maybe - but probably not - see below)
- 1280x800 IPS display
- 1.2MP front cam, mic (video chats)
- GPS, compass (monetizing location services)
- bluetooth
- 1.2 GHz quad-core
- 1GB RAM
- OS= 4.1 Jelly Bean
Since they're supposed to be producing a cheaper ad-supported variant of last years Fire, I really don't see them making an 8GB version of the above. Its price would be too close to the ad version.
By completely selling out the first gen Fire, Amazon won't be placed in the position of having it compete with its new ad-supported successor; thereby taking away sales. As to pricing for the ad-supported variant, I'm guessing anywhere from $149 to $169.
This will give customers two distinct choices. They can either get the more powerful version for $249 or the less powerful ad-supported version for a price even lower than the Nexus 7's cheaper variant.
...or, I could be wrong