Well, reducing the price of old products before new ones are introduced is not what companies usually do. What they often do is that they will stop the production of the old one instead, and set a price for the new product that is on about the same level as the old. The price of the old ones will be left entirely to the decision of second hand sellers and buyers.
If the price varies, it is not because the new product is introduced. Rather, it is because of changes in demand-supply relations.
Since kindle is still desperately demanded by so many people (like, e.g., SamuraiXSendai
), I don't see why Amazon should reduce the price.