Like the Kindle Fire, the $199 Nexus 7 has 8 GB of onboard storage. Unlike the Fire, however, the Nexus 7 also comes in a 16 GB configuration for $249. Unfortunately, the Kindle Fire tops out at 8 GB--and only about 6 GB of that room is available for user content. The next-gen Fire really needs a 16 GB option, and Amazon likely will offer one. But what would really set tongues a-wagging is if the retailer got mondo-aggressive and offered the 16 GB model for just $199. Take that, Google!
Doable? Well, if the Nexus 7's bill of materials comes to $150 + change, what might the new Fire's cost to build? Amazon would want to hit the $199 price point (with a 16 GB model) without losing too much of its shirt.