Rumor: Bigger Kindle Fires in the works

Not only are more Kindle Fire units getting ready to ship out, but Amazon is also working on newer versions of its flagship Android tablet, according to supply chain reports.

Currently, all Kindle Fire units are being manufactured by Quanta Computer, and millions are expected to be cranked through the assembly line before the holiday season is over.

But according to Digitimes, production will be increased even more as we step into the next year, with consumer electronics powerhouse Foxconn stepping into the picture. The giant company, which also supplies components to such companies as Apple, Microsoft, Nintendo, and Sony, will start supplying Amazon with 7-inch Kindle Fire units alongside Quanta.

But what’s more interesting is that supply chain sources also suggest that Amazon is planning to roll out 8.9-inch and 10.1-inch versions of the tablet as it heads further into 2012.

There had been speculation that the Kindle Fire would be part of a new line of products for Amazon – just like it did with the original Kindle and its myriad sizes and model numbers – but this is the first reported evidence from suppliers that give credence to the rumors.

The fact that the iPad has a 10.1-inch display has caused many to already dismiss the idea that the 7-inch Kindle Fire could be an iPad killer. But with a 10.1-inch Kindle Fire on its heels, there could be some serious competition.