Amazon is likely to launch the followup to the current kindle Fire towards the end of next year, as production of the new device should start in the second quarter of 2012, online website Digitimes writes, citing anonymous industry sources.
Yenting Chen and Steve Shen say that Foxconn Electronics will join Quanta Computer to build the tablet, with system on chips from Nvidia (possibly the Tegra 2 or Tegra 3) added to Texas Instruments OMAP range.
The Kindle Fire is enjoying some great sales momentum according to Amazon itself - which says that it is already the best selling product on its website - and could rapidly become the second biggest tablet player behind Apple.
IHS iSuppli suggests that just over 28 million tablets could be sold in the fourth quarter of 2011 with the Apple iPad accounting for two thirds of that and Kindle Fire - which has only just been launched - a staggering 14 per cent.
The Kindle Fire's main selling point is its price, $199, half that of the Apple iPad 2. It comes with a dual core TI OMAP processor, a 7-inch 1024x600 pixel touchscreen, 512MB RAM and 8GB onboard storage.