In recent weeks, rumors have been circulating that the Amazon Kindle Fire would be getting a price drop. This is because, the rumor says, the Kindle Fire will be receiving a refresh and could come in new 8.9″ and 10.1″ models. It's likely the price drop would come ahead of the refresh in order to clear inventory.
Reports are claiming the the Kindle Fire is not doing very well in recent weeks. It has even been losing out to Barnes & Noble's competitor, the Nook. Combine that with a Google tablet that is rumored to be coming out this July for somewhere between $149-199, and Amazon has a real problem on its hands.
The Google tablet will run a more stock version of Android than the highly customized one on the Kindle Fire. This would make it more appealing to many users and would force Amazon to drop the price regardless of whether or not it is getting a refresh. Remember, this price drop and refresh are just a rumor, so take them with a grain of salt.