As the Kindle Fire’s holiday steam continues to taper off, Amazon is looking ahead to an updated version of their 7-inch e-reader/tablet hybrid. The release of a second generation Kindle Fire could see the original’s price dropped to $149. The reduced price would be even more enticing to consumers looking for a cheap tablet and further help Amazon to compete with a new crop of low cost/high power tablets. This includes the rumored Nexus Tablet, a partnership between Google and ASUS that aims to provide an Android slate with quad-core processing power at the $200 price point currently occupied by the Kindle Fire.
The next generation Kindle Fire would feature an upgraded display with a 1280 x 800 resolution and possible enhancements in processing power. It has long been rumored that Amazon would produce a second Kindle tablet with a larger display size, once said to launch simultaneously with the first version of the customized Android slate. Both 8.9-inch and 10.1-inch models have been proposed, and it seemed likely the former was on track to launch this year. Now sources are saying Amazon has put plans for the mid-size tablet on hold, though a 10.1-inch Kindle still remains a possibility.