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Amazon hasn’t formally unveiled its tablet yet, but Bloomberg News reports that the Kindle Fire will sell for $199.

The aggressive price, compared with $499 for the least-expensive iPad, shows how the Seattle retailer will be relying heavily on additional usage of its online services to subsidize the cost of its tablet. It’s expected to come with a free 30-day trial to Amazon’s $79/year Prime subscription, which will include access to more than 11,000 streaming movies and TV shows.

Bloomberg reports that the Kindle Fire will come with a 7-inch screen and built-in WiFi connectivity, but not a 3G connection. The iPad comes with a 9.7-inch screen.

Bezos tells Bloomberg Businessweek’s Brad Stone in the magazine’s upcoming cover story, “We don’t think of the Kindle Fire as a tablet. We think of it as a service.”

Amazon’s news conference starts shortly in New York. More to come.

Related Posts: Picture: This is the Kindle Fire … Amazon’s other big news: New Kindles start at $79

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