Amazon.com's long-awaited tablet computer will cost $199, Bloomberg reported on Wednesday, potentially cheap enough to give Apple's iPad some serious competition for the first time.

The Kindle Fire has a seven-inch screen, Wi-Fi, but no camera or 3G wireless connection, according to Bloomberg.

Amazon shares rose 3.2 percent $231.29, while shares of Barnes & Noble, maker of the Nook e-reader, dropped 7.9 percent to $12.16 in morning action. - Reuters