A new bit of "rumint" from DigiTimes suggests that Amazon has dropped their idea of offering an 8.9-inch version of their Kindle Fire, and instead will focus instead on their new 10-Inch model instead. Supposedly, Amazon's intention is to price this new 10-inch version of the Kindle Fire competitively enough to take on Apple's iPad directly in the market. Obviously, Amazon's ecosystem of Kindle books, and other digital content, well help them in this regard, but they do have a big hill to climb.
On the flip-side of this, this same rumor from DigiTimes suggests that the rumors of Apple coming out with an iPad mini are true, and that Apple intends to compete directly with Amazon in the smaller and cheaper segment too. Could Apple price their product competitively enough to be taken seriously? Also, if they do, will they hurt their reputation as a premier and higher-end hardware vendor by doing so? It will be interesting to see how things pan out.
Source: Kindle-FireForum via GottabeMobile