Amazon.com is set to ship a new Kindle model starting this week. The Kindle Fire is a 7” tablet that features full color display and tight intergration with Amazon’s cloud service. The new Kindle Fire priced at only $199 will attract new customers and existing Kindle customers may make the upgrade. Consumsers that wanted a tablet computer for the holidays may opt for the Kindle Fire instead of Apple’s iPad 2. The iPad 2 starts at $499. At half the price the Kindle Fire may prove to be a holiday success for Amazon.com.

Amazon.com had a market capitalization of $98.86 billion dollars as of November 11, 2011. The company’s last trade was at 217.39 during trading hours on November 11, 2011.