Industry sources are reporting that Amazon is preparing to launch a new edition of Kindle Fire that could go on sale in second quarter of next year.

This new version would feature an 8.9 inch display compared to the 7 inch display on the current version.

Amazon is probably going for this screen size to keep the costs low while still catering to audience which wants a larger display on their Tablets.

They are however likely to launch a 10.1 inch edition of the Kindle Fire later next year to cater to all the segments of the Tablet PC market.