It looks like Amazon is working on two new flavors of its wildly popular Kindle Fire. DigiTimes is reporting that the company is already hard at work developing both 8.9-inch and 10.1-inch versions of the Fire, and the 8.9-incher could be available as soon as the end of second quarter of 2012.
The report cites supply chain makers for Amazon, who say that the 8.9-inch Fire will include displays by LG and Samsung, who are both promoting their 8.9-inch panels. But why launch the 8.9-inch version first? To avoid competition with the other billion and a half 10.1-inch tablets, of course. However, the report also indicates that Amazon will still launch the 10.1-inch Fire in late 2012. That would put the Fire in direct competition with Apple's iPad 2, as well as Samsung's Galaxy Tab 10.1.
So who's making the new Fires? None other than Foxconn Electronics. Amazon has also reportedly tapped Foxconn to become a second ODM for the 7-inch Fire, taking some of the load off of current design manufacturer Quanta Computer.
Speculation about a larger version of the Kindle Fire has been running rampant for some time now. And this just adds to the mounting rumors. The company is also suspected of planning a Kindle style smartphone, although information on that has been limited to conjecture. But if the early success of the 7-inch Fire is any indication, Amazon could have some serious hits on its hands.