The Amazon Kindle Fire 2 is expected to be thinner and lighter than its older sibling, and will have a built-in camera, similar to its Google rival, the Nexus 7, according to a new report.

As reported by All Things D, which cited sources familiar with Amazon's plans, the new Kindle Fire will also sport a much-improved display. The device will offer a 1280-by-800-pixel resolution, bigger than the current 1024-by-600 Kindle Fire display. There will also be an entirely new width-to-height ratio, again following the Nexus 7.

The change won't do much to improve the new Fire's battery life, though, according to DisplaySearch senior analyst Richard Shim, who told ATD that the pixel density increase isn't as drastic as the different between the iPad 2 and the newest iteration of Apple's Retina display tablet, so it is less likely to alter the device's battery or thickness.

ATD also reported the addition of a faster chip, improved graphics, and an updated version of Android.

The mini-tablet market could begin heating up as early as next month; the Kindle Fire 2 is expected to hit shelves between July 31 and Aug. 7, according to the China Times, which first reported the news on Wednesday.

Amazon told its Taiwan-based manufacturing partner Quanto last week to begin production of the next-generation tablet, something of a "counterattack" against Google's Nexus 7, the Times said.

Apple, however, is also reportedly prepping an "iPad mini," with a screen size smaller than 8 inches.

Amazon's first Wi-Fi-capable Kindle Fire is available on the online retailer's website for $199. There is no word yet on the potential price of the Fire 2.

For more, see PCMag's review of the Kindle Fire and the slideshow below.