Amazon has cut the price of its 7-inch Kindle Fire HD to $159, further fueling speculation that the next-generation Kindle Fire is imminent.

The new discount marks the biggest cut so far this year, as the Kindle Fire HD 7-inch normally retails for $199.

On the other hand, this is not the first time that Amazon has slashed the prices of its tablets. The retailer offered similar discounts during holidays in recent months, including special deals for Father's Day and the 4^th of July, when the 7-inch Kindle Fire HD sported a $169 price tag.

This time of year is also full of promotions and special offers, as retailers and device manufacturers target back-to-school shoppers. Amazon is also expected to introduce a brand new line of Kindle tablets later this year, so the new price cuts can also be interpreted as a way to clear existing inventory to make room for new products.

The next-generation Kindle Fire HD tablets are expected to sport an all-new exterior design, as well as refreshed internals.

As AllThingsD points out, however, Amazon's timing for discounting the Kindle Fire is intriguing, as it follows IDC's quarterly tablet report released earlier this week. The report shows that Amazon is no longer among the top five tablet makers, based on shipments in the second quarter. While during the same period last year Amazon ranked third, this year it fell on the sixth spot, the research firm told AllThingsD.

Amazon chose not to disclose sales figures for its Kindles, which means it's difficult to determine whether it has a problem or not. The Kindle Fire line is quite popular, however, and enjoyed notable success so far.

The new price cuts likely target the back-to-school shopping season, aiming to lure in more tablet shoppers. With the next-generation Kindles on the way as well, Amazon's new discounts make even more sense.

Tablet shoppers interested in grabbing a Kindle Fire HD 7-inch for a lower price tag can check out Amazon's current promotion at this link. The company does not mention for how long this promotion will be available, but it's likely a limited-time offer.