Amazon suppliers may be working on versions of the Kindle Fire with 8.9-inch and 10.1-inch screens.
NEW YORK (TheStreet) -- Amazon(:AMZN) may be working on larger versions of its Kindle Fire tablet as it ramps up competition against Apple's(:AAPL) iPad, according to Taiwanese blog DigiTimes.
Suppliers for the e-commerce giant are developing Kindle Fire tablets with 8.9-inch and 10.1-inch screens, the blog said. The Kindle Fire currently ships with a 7-inch screen.
The iPad 2, meanwhile, has a 9.7-inch screen. Amazon's Kindle Fire
Amazon's 8.9-inch version will reportedly launch by the end of the second quarter of 2012.
The Kindle Fire, which was first announced in September, began shipping a week ago. Priced at $199, the Fire is expected to sell 5 million units during the holiday season, according to analysts.
The device is the second most desired tablet behind the iPad, according to a new study from ChangeWave Research.
Shares of Amazon dropped 5.3% to $186.65 in afternoon trading on Monday.
--Written by Olivia Oran in New York.
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