Now consumers in the UK and the U.S. can pick up yet another e-reader, the Kindle Fire HD, at reduced prices, thanks to Amazon.

The Kindle Fire HD promo was first spotted by MoDaCo founder Paul O'Brien who tweeted the discounted price.

The e-retailer has dropped the price of its Kindle Fire HD and is offering the 7-inch device for £139 (instead of £159) and $169 (instead of $199) in the UK and U.S., respectively, which is a 15 percent discount. These slashed down prices are for the 16GB variant of the e-reader.

The 32GB variant of the Kindle Fire HD will set consumers back by £159 (instead of £179) and $199 (instead of $229) in the UK and U.S., respectively.

Earlier in June, we reported that Barnes & Noble (B&N) was offering the NOOK HD at discounted prices courtesy of a Father's day promo. Consumers could purchase the e-reader for $149 (16GB model) instead of $229.

Market observers opine that Amazon's move to slash the 7-inch Kindle Fire HD's price is in response to the B&N price cuts. Like, the NOOK HD offer, Amazon's price cut for the 16GB variant of the e-reader is also a "limited time offer." At this juncture it is not known till when the device will be available at this discounted price, but it will be interesting to see whose promotion i.e. B&N or Amazon will end first.

Despite the stiff rivalry, the reasons for the price cuts from the two retailers is different. While Amazon wants to stay in the race and be competitive, B&N is allegedly looking to clear out its existing inventory to make way for impending NOOK HD+ models.

Whatever the motives, consumers at the end of the day benefit from this rivalry and can take advantage of the price cuts.

If you want to pick up the Kindle Fire HD in the U.S. head here. Alternately, consumers in the UK can check this link.