Online shopping giant Amazon recently released Kindle Fire about a week ago. However, there are rumors that new versions of the device with 8.9 inches and 10.1 inches or screen real estate are already out.

Taiwanese online publication DigiTimes reported that Amazon is planning to start the production of 8.9-inch Kindle Fire that will be released in the second quarter of next year or roughly around May 2012. The DigiTimes source did not divulge an exact date.

According to the post, Foxconn Electronics, which is one of Apple's major partners, will help Amazon to build a newer model to replace the current generation of Kindle Fire. According to the source, the new and bigger versions are due to LG Display's and Samsung Electronics' promotion of 8.9-inch panels and to avoid competition with 9.7-10.1-inch products offered by competitors.

Earlier this month, Amazon recently released the 7-inch Kindle Fire sporting an Android OS. The operating system added value and appeal to consumers. According to the survey conducted by research firm ChangeWave Research, 22 percent of tablet buyers said that they opt to purchase the latest Amazon offering. Apple's iPad is able to beat the aforementioned figure with 65 percent.

The e-retail company has not yet confirmed the rumors but if the 7-inch Kindle Fire proved to be successful, Amazon will provide more options to their consumers. Ironically, Amazon pays $201.70 to produce a Kindle Fire but the device is only sold in the market for $199. While selling the tablets at a loss, Amazon is expected to recoup the profits from the paid content and other products that Amazon is planning to sell to Kindle Fire users.

RELATED STORIES