Amazon Said to Plan a 10-Inch Kindle Fire

Amazon Kindle FireAmazon is gearing up to release a 10-inch version of the Kindle Fire tablet, claims the China Times (The link is to an article in Chinese). The device could be released with the Fire’s second version sometime in the middle of the year.

How would the China Times know? Its information is based on claims from people involved in the Taiwan side of Amazon’s supply chain. Someone along the line has reported a big order for 10-inch screens that seem to be headed for Amazon devices.

A 10-inch Kindle Fire makes sense, but it will be a test for Amazon. The current version sells because of the price. At $200 it represents a good value for the money–that’s about what it costs Amazon to make each one. Amazon’s profit comes from the content it provides to buyers. A 10-inch screen would put the Fire in iPad territory–where it would face formidable competition from Apple in the form of the iPad 3, which is expected to be released next month.

A larger Kindle is bound to come with a heftier price tag. It will no doubt be cheaper than the iPad, but more expensive than its seven-inch sibling. That could make the purchasing decision a little more complicated.