Amazon launches new Kindle Fire to compete with iPad

Amazon, the online retailer, has launched a new tablet computer that will go head-to-head in the market against Apple's best-selling iPad device, undercutting it on price.

head in the market against Apple's best-selling iPad device, undercutting it on price.

Two versions of the machine, the Kindle Fire and Kindle Fire HD, were unveiled at a press conference in the United States.

Previously only sold in the US, it will be the first time UK consumers will be able to buy the new HD version, which has a seven-inch screen, for £159, with the second version at £129. The cheapest version of the iPad costs £399.

While the new Kindle device is smaller than the iPad and does not match its screen resolution, the HD version has an 11-hour battery life, a camera and 16 gigabytes of storage and will have easy access to Amazon's Kindle book service and the streaming service, LOVEFiLM, which is a subsidiary of the firm.

Amazon founder Jeff Bezos said: "Not only does Kindle Fire HD feature the most advanced hardware, it's also a service.