Apple’s iPad has been sitting on top of the tablet market and no other company has ever come close to its success. However, analysts believe the tablet giant is finally going to get a real opponent with Amazon’s Kindle tablet, which just launched moments ago.  The tech world is keeping a close eye on the event to see if the insights are not just hot air.

Even before Amazon officially revealed the new tablet, Bloomberg went ahead and announced the specs.  The Kindle Fire is a 7-inch tablet running Android and functioning as a “souped-up version of the Kindle.” It still has no camera, microphone or 3G, but will come with WiFi and a free 30-day trial of Amazon Prime for unlimited instant streaming of movies and TV shows, and free two-day shipping.  The original Kindle will also take a price cut, selling at $79.

Software-wise, Amazon has “painted over the rough surfaces” of Android with its accessible user interface, and has closely tailored its content library with the device including the Amazon App Store.

Amazon’s Jeff Bezos also announced the new touchscreen Kindle, branded as Kindle Touch. The keyboard was removed, now featuring a traditional Kindle E-ink display, and can be navigated in three touch zones on the front of the reader using infrared touch, employing a new menu system call EasyReach.  The device is priced at $99.  It’s also got another version with 3G called Kindle Touch 3G priced at $149.