According to Digitimes, sources from within the supply chain are reporting that Amazon is moving away from their original plans to release an 8.9-inch Kindle Fire, instead moving straight to a follow up, 7-inch Kindle Fire sequel. It wasn’t mentioned exactly what kind of enhancements we could expect in the next model but I’d be willing to wager a camera would make it to the Fire this time around.
Sources also mentioned the larger 10-inch model (codenamed “Hollywood”), is still in the works and that both The New Kindle Fire and 10-inch versions would ship in the second half of this year. Amazon’s competition once again is the iPad 2 after Apple decided to keep the tab in production and reduce the price to $400.