(Pocket-lint) - Amazon has announced a new Fire TV Stick that will retail for the same price as the previous model. The company also unveiled a cheaper model.

The latest Fire TV Stick costs $39.99 and is supposedly 50 per cent more powerful than its predecessor. As for the cheaper model, it's called the Fire TV Stick Lite and will cost $29.99. Amazon described it as the “most powerful” streaming device consumers can find for under $30. Introducing a super-affordable model of the Fire TV Stick should help Amazon compete with bargain streaming devices from competitors such as the Roku Express or Chromecast.

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So far, the only difference we know between the two devices is that the Fire TV Stick Lite will not be able to output expanded HDR colour, while the $40 Fire TV Stick will be able to fully support HDR and 4K. Both devices will feature Alexa voice control and enter a low power mode when not in use.

They also both will have access to all the same apps and games.

If the only difference is in picture quality between these two Fire TV Sticks, then the best choice for consumers will probably be determined by the TV they plan on using the device with, but there will surely be a market for both devices, with Amazon announcing that Fire TV devices have hit 40 million active users. 

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Amazon also announced plans to update its Fire TV interface later this year. It will introduce user profiles and allow you to favourite most-used apps.

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Writing by Maggie Tillman. Editing by Stuart Miles.