Rumor: Amazon may release up to 4 new Kindle Fire tablets this year

Releasing a new and improved Kindle Fire tablet this year is a no-brainer for Amazon. The online retailer’s first crack at the tablet market didn’t exactly break Apple’s stranglehold on the market, but was still a solid effort, moving around four million units in its opening weeks and instantly grabbing the second-place spot. New rumors, however, suggest the company may go above and beyond that expectation, releasing several versions of the device in time for the holidays.

Citing inside sources, Taiwanese rumor mill Digitimes placed the possible figure between two and four, which includes a high-end 10-inch model to debut at either $249 or $299, a new 7-inch model for $199 and a basic entry-level version for just $169. The fate of a rumored 8.9-inch model is unknown.

The original 7-inch Kindle Fire debuted at $199 — a price point that played a pivotal role in its initial success. At $299, a new (and presumably souped-up) Fire would be in the same price ballpark as Apple’s iPad 2. Apple lowered the entry point for its hit tablet to $399 when it unveiled the third generation iPad earlier this month.

The China Economic News Service backed the notion that Amazon will stick with three Kindle Fires, but discounted the possibility of a 10-inch model. Instead, the news site reported that the company will release a 1024×600 7-inch model, a 1280×800 7-inch model and a 1920×1200 8.9-inch model.