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Amazon Kindle Fire 2 tipped with Nexus 7-matching specifications

With Google's Nexus 7 cut-price Android tablet just around the corner, it's clear that Amazon is going to have to step up its game if it wants its Kindle Fire family to compete - and the latest rumours suggest it is going to do exactly that.

Available exclusively in the US, the Kindle Fire is a Kindle in name only: unlike its brethren, the device features a full-colour LCD screen and a heavily customised version of Android which pushes users towards the Amazon Marketplace for application purchases rather than Google's own Play Store. The device also features Kindle software pre-loaded, giving it the same functionality as the e-Ink based Kindle eReader devices.

The Nexus 7 poses a real threat to the Kindle Fire, however: available internationally at launch, the Nexus 7 has a better display, the latest Android 'Jelly Bean' 4.1 software, a more powerful quad-core Nvidia Tegra 3 processor, and yet still costs the same. Without a revised Kindle Fire, Amazon is likely to find its sales dropping off heavily as the Nexus 7 builds up steam.

Amazon's answer is the Kindle Fire 2, an upgraded device which - according to anonymous sources "familiar with Amazon's plans" talking to AllThingsD - will include a 1,280x800 high-resolution display - matching that of the Nexus 7 - along with a built-in camera, a faster processor and additional memory for improved performance. More importantly, it should also launch internationally - finally giving UK tablet buyers the chance to get their hands on what has proved a popular product line in the US.

With Apple rumoured to be launching a 7in iPad Mini, however, both companies could be in for a serious fight.

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