Next Amazon Kindle Fire: Thinner, lighter, better display

Amazon

(CBS News) Amazon is working on the next Kindle Fire with hardware improvements and a better display, according to a recent report.

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The online retail giant is planning an upgrade of its 7-inch tablet computer in the second half of this year, reports AllThingsD. Amazon's new Kindle Fire is said to be thinner and lighter than its predecessor. The device will also reportedly come with a built-in camera and better display.

Developers have been asked to build apps with a 1,280 x 800 display resolution - an upgrade from the current 1,024 x 600 display, the report says. The new screen size may suggest a larger Kindle Fire to match the Apple iPad. However, a change to the Kindle Fire's size is purely speculation at this point.

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There have been several rumors that Apple is planning to launch a 7-inch tablet to compete with the Kindle Fire, leaving the two companies in a high-tech clash for the hearts and minds of consumers - not to mention their pocketbooks.

The Kindle Fire is priced at $199, while a new iPad starts at $499. If the two companies create devices to compete with each other, consumers may benefit from a high-tech battle for competitive pricing. Lest we forget, Google recently unveiled its own 7-inch tablet for $199, the Nexus 7, which will be the first tablet to run the newest version of the Android operating system.

Amazon may be planning a one-two punch to keep customers already immersed in the company's ecosystem. Last week, a report by Bloomberg suggested that Amazon was also planning on releasing a smartphone to compete with the Apple iPhone.There are no details on the rumored device's hardware specifications or price.

If the rumors are true, consumers may see a string of excellent options released ahead of the holiday season.