All eyes are on Amazon to see what the online retailer and Fire maker will do in response to the $200 Google Nexus 7 tablet, which will compete in a market space Amazon owned in 2011: the low-priced but brand name iPad alternative.

It’s all but confirmed that Amazon will launch a Kindle Fire successor, which debuted a year ago this September. New rumors hint at what the Kindle Fire 2 spec sheet might look like.

Sources told AllThingsD over the weekend that the next Kindle fire will launch in Q3, in time for the holidays, and be thinner and lighter than the original. It will also have a “built-in camera,” which could mean either a front- or rear-facing shooter, or both (the Nexus 7 only has a front-facing camera, mostly for video chat). It will also retain its 7-inch display size and sport an increased display resolution, from 1024 x 600 to 1280 x 800, which matches the Nexus 7.

That’s not all, however. NPD Display Search analyst Richard Shim, citing information from the “supply chain” claims there will be four new Kindle Fire 2 models, including a larger, 8.9 inch unit. The new Kindle Fire 2 units will be a 7-inch Fire 2 with no camera and 1024 x 600 display (just like the original) as well as a 7-inch unit with a camera and 1280 x 800 display, which lines up with what AllThingsD is reporting. Both are set for August production, with a 4G version of the 1280 x 800 unit lined up for September.

Perhaps most interesting, Shim reports that Amazon will release a 8.9-inch Kindle Fire 2 with a 1920 x 1200 display in Q4, which Amazon will probably market as having a ?full HD? display. Rumors of a larger Kindle Fire have been around since before the device first launched in 2011.

Source: AllThingsD, CNET

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