Amazon's Kindle Fire: Tech Weekly

NEW YORK (TheStreet) -- Amazon(AMZN) was Silicon Valley's biggest newsmaker this week, ending months of rumor and speculation on Wednesday when it finally entered the tablet market.

The Internet giant's CEO, Jeff Bezos, unveiled the Kindle Fire at a press event in New York City, aiming a careful dig at Apple's(AAPL) iPad.

Jeff Bezos, Chairman and CEO of Amazon.com, introduces the Kindle Fire.

Amazon priced its 7-inch touch screen device at $199, significantly less than the iPad, which starts at $499. The Seattle-based firm also launched Amazon Silk, a mobile browser that combines Amazon's cloud computing with the Kindle Fire.

"We're building premium products at nonpremium prices," Bezos said at the New York press conference. "We are determined to do that."

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The Amazon tablet has already sent ripples through the gadget market. On Friday, for example, Best Buy(BBY)got aggressive in its tablet pricing. The retailer cut the price of HTC's Flyer to $299 from $499 and slashed Research In Motion's(RIMM) PlayBook by the same amount.

Amazon shares ended the week down $6.21, or 2.79%, at $216.23, mirroring a broader retreat in tech stocks. The Nasdaq closed down 2.63% on Friday.

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Apple confirmed on Tuesday that its next big product event will take place on Tuesday, Oct. 4, likely marking the debut of the new iPhone 5.

The launch at Apple's Cupertino, Calif. HQ will be the first of the post-Steve Jobs era, representing a crucial moment for the company's new CEO Tim Cook.

The new phone is expected to run on a dual-core processor with a better camera. There has also been chatter about a stripped-down iPhone 4 to sell into expanding markets such as China.

Apple also hit the headlines this week over its sprawling global patent battle with Samsung. The South Korean tech giant, however, reportedly offered an olive branch to the iPhone maker in one local dispute, taking place in Australia.

Apple's stock ended the week down $9.39, or 2.4%, at $381.18.