Amazon on Sunday dropped the prices of its 7-inch Kindle Fire HD. The 16GB model's new price is $169 from $199, and the 32GB is down to $199 from $229. However, the deals include "special offers," meaning that sponsored screensavers for books, movies and other electronics deals display on the Kindle Fire HD's lock screen.

Amazon also slashed the prices of its 8.9-inch Kindle Fire HD (to $269 from $299) and Kindle Fire HD 4G (to $399 from $499) back in March.

The price cuts could mean an upcming refresh of the Kindle Fire and Kindle Fire HD, as the company may be looking to clear out some inventory before the next release.