Looks like Amazon is not seeing too many sales of the 32GB version of its Kindle Fire HD tablet. In the bid to rectify the situation, the company has reduced the price of the 32GB version. Earlier being sold at $249, the tablet is now available for just $229.

That is a full $20 price-cut, and the fact that there is hardly any margin for the retail giant in the hardware, even the $20 price-cut matters a lot.

The 16GB version of Kindle Fire HD tablet remains at its existing price of $199.

The timing of this price-reduction is particularly interesting, as just a month ago; Amazon had slashed the price of Kindle Fire HD 8.9.

May be the Nexus 7 and other low-priced tablets are eating up all of Amazon’s market.

To remind you, Kindle Fire HD features 7-inch (1280x800p) display. It is powered by Texas Instruments OMAP dual-core processor. The tablet runs on Amazon’s custom version Android 4.0. Other features include Wi-Fi, HDMI out, Bluetooth, and HD front camera.

The company had recently released a software update for Kindle Fire HD bringing support for X-Ray for Textbooks and more features – full story here.