Amazon has given its Taiwan-based manufacturing partner Quanta the go-ahead to start the Kindle Fire 2 assembly line, according to a report from the China Times.
NPD DisplaySearch analyst Richard Shim, meanwhile, told CNET that at least three 7-inch Kindle tablets could come out of Amazon's factories, with varying features.
Through a translation, the China Times said the first wave of Kindle 2 tablets – about 2 million units – will likely hit shelves sometime between July 31 and Aug. 7, calling it a "counterattack" against Google's Nexus 7.
The 7-inch Nexus 7 is available for pre-order now, and will be widely available to customers in the U.S., U.K., Canada, and Australia in mid-July. The 8GB product will sell for $199, while the 16GB earns a $249 price tag.
Amazon's current WiFi-capable Kindle Fire tablet is sold for $199 on the online retailer's website.
The second-generation Kindle Fire is expected to measure up at 7 inches, though according to NPD's Shim, an 8.9-inch tablet may come to fruition soon. The China Times also pointed to a possible 8.9- or even 10-inch display, but acknowledged that those are long-time rumors.
According to Shim, the three Amazon tablets will include one with a 1,024-by-600 display and no camera, one boasting a 1,280-by-800 display but no camera, and one with the same display size but a built-in camera and 4G capabilities, CNET said.
While Shim doesn't foresee a 10-inch model coming, he predicted an 8.9-inch Kindle Fire, with an improved 1,920-by-1,280 resolution, which could begin production in the fourth quarter.
A built-in camera lens and improved screen resolution (the first-gen Fire has a 1,024-by-600-pixel resolution) are one way to fight against the Apple iPad and other competitors. Amazon will also beef up its gaming application content, the China Times said, to help narrow the gap.
Amazon has not yet made any announcements. A June report from CNET said Amazon is reportedly eyeing July 31 for a Kindle Fire 2 launch event.
Earlier today, meanwhile, reports emerged about an Amazon-based smartphone.
For more, see PCMag's Google Nexus 7 review, as well as a side-by-side comparison of the Nexus 7 and the first-generation Kindle Fire tablet.