Rumors that a $99 Kindle Fire HD is in the works have been denied by Amazon.

There was a lot of buzz about a $99 Kindle Fire in production after a report from TechCrunch on Wednesday.

The report cited unnamed sources and stated a $99 Kindle Fire is currently in production and that plans are to ship it later this year. The TechCrunch report also claimed the $99 version of the Kindle Fire would resemble the current 7-inch Kindle Fire HD with a 1,280x800 resolution display and a processor from Texas Instruments.

The idea seems reasonable, according to IDC tablet research director Tom Mainelli. He said to TechCrunch, "The infrastructure is definitely in place for Amazon to go even lower."

Mainelli suggests, "If they can sell the product at roughly what it costs to build, that fits their long-term vision to make money selling you content on that device. It's entirely possible - physically possible - to create a device that costs $99, particularly at the scale that Amazon would do it."

It was also suggested that if Amazon were to lower the cost of the product, they would be in an even better situation to compete similar products on the market, notably the Apple iPad mini and a vast array of cheap Android tablets.

Despite the sound reasoning, Amazon denied today that they are preparing to release an $99 Kindle Fire.

In an email sent to PCMag, a spokesperson for Amazon wrote, "It's not happening - we are already at the lowest price points possible for that hardware."

Amazon recently lowered the price of it's 8.9-inch Kindle Fire to $269 for the Wi-Fi version and $449 for the 4G Kindle Fire HD.