Reports said that largest online retailer Amazon will release three new Kindle Fire tablets and a smartphone this year.

Chinese news agency China Times published that manufacturer Quanta is already working on a first batch of Kindle Fire 2 devices.

It seems that Amazon is making a counterattack for Google's release of Nexus 7 tablet that has been gathering rave reviews from critics and reviewers. Many reports claimed that the Nexus 7 is the direct competitor of Kindle Fire.

China Times reported that the new Kindle Fire 2 will be released on August 7. This is somehow supported by CNET's report that claimed the Amazon will be releasing the devices a week earlier. The publication also added that an NPD DisplaySearch analyst has predicted that as many as four new tablet models are in the works at Amazon, based on supply chain data.

One of the Kindle Fire 2 tablets will have a 1024x600 display and no camera, and another with a 1280x800 screen with a camera. By the end of the year, a third 7-inch tablet could add 4G to the higher-end model, and a subsequent 8.9-inch device would pack on a 1920x1200 display.

Moreover, a recent report from Bloomberg said that the company is planning to deploy its own smartphone that will battled head on with Apple's iPhone and Google's Android platform.

According to the sources from Chinese manufacturer Foxxconn, Amazon is working on its first smartphone. Foxconn and Amazon had a business relationship when manufacturing the Kindle products. Thus, this is simply expanding the business.

Bloomberg also added that Amazon's next step is to acquire a number of wireless technology patents in order to defend its product from lawsuits, which are highly common among smartphone makers like Apple, Samsung, HTC and Google. However, no further details is revealed as Amazon is being secretive with its plans.

Apple did a great job with its previous products. Amazon's chief executive Jeff Bezos has been preparing the groundwork for Amazon to become a prime company in the consumer media industry.

In September 2011, Bezos announced two new Kindle e-readers, the Kindle Touch and the Kindle Touch 3G, and the company's first tablet, the Kindle Fire. The products cut significantly Apple's profits since Amazon's products are drastically cheaper than Apple's iPad and other products.