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By Leena Rao

It looks like Amazon (NASDAQ:AMZN) had dropped the price of the latest generation Kindle 2, the 6-inch reading wireless reading device, from $359 to $299. I’m actually kicking myself right now because I just purchased the same one for the higher price a few days ago.

It’s unclear why Amazon dropped the price. Sales don’t seem to be a problem, as it appeared sales for the latest generation Kindle are growing. As of April, sales of the Kindle 2 were apparently selling at roughly double the rate of the first generation device. According to a source close to Amazon, approximately 300,000 of the Kindle 2s had been shipped as of mid-April, suggesting Amazon has made over $100 million in revenue from sales of the $359 device alone this year.

Amazon officially unveiled the Kindle 2 in February. Besides being smaller and sleeker than its older brother, the Kindle 2 has a longer battery life and 7 times the storage. Amazon dropped the price of the first generation Kindles to $299. But why would you buy the old version for the same price as the new, smaller one? The Kindle DX is still priced at $489. We first broke the news of the Kindle 2 and the large screen Kindle last fall.

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