It has been widely assumed that Amazon intends to replace the Kindle Fire tablet with a second generation of the device.
According to some sources, Amazon were going to release two different Kindle Fire tablets. The popular version of events is that one was going to be 7 inches, and the other was going to measure in at 10 inches. That's territory ruled by Apple's iPad, with Samsung's Tab 10.1 line and some others vying for market share.
Someone who claims to have seen the newer Kindle Fire tablets is claiming that this is not correct. One tablet is going to be a revamped version of the one you can buy right now, while the other is apparently going to be a newer iteration.
Releasing a revamped version of an existing product alongside a new version sounds like a strange business decision but there could be some genuine logic behind it. Keeping away from 10-inch tablets means you're not putting yourself into direct competition with the giant of the tablet market.
The actual new version is apparently going to bring improved hardware and a larger - still non-expandable - amount of storage. The improved hardware would include a faster processor, physical controls for volume, a camera, and an HDMI port. The redesigned tablet presumably is going to be just the current version in a new shell or something along those lines.
With Amazon's heavy focus on reading through Kindle devices, a new Kindle Fire could still make an interesting rival for the Nexus 7. Both are Android at heart, and both are 7-inch tablets. The Kindle Fire might win the hardware war against the Nexus 7. If it manages to do so affordably, it could become an exciting race between two unlikely rivals.