Amazon is working on a bigger Kindle Fire, and the DigiTimes is reporting Amazon has scrapped an 8.9-inch model in favor of a 10.1-inch Kindle Fire tablet. It is also expected that Amazon will be releasing a new 7-inch model in the second half of 2012, in addition to the larger tablet.
Amazon is also refocusing its efforts on the Fire tablet line, given its success in 2011, perhaps at the expense of its eReaders. The report indicates that Amazon has reduced orders to E Ink holdings for Amazon's eInk Kindle screens.
DigiTimes was the first to report about the 8.9-inch Kindle Fire, and is now backtracking. This is no surprise, given the DigiTimes is a notorious rumor monger that often gets things wrong. However, they do closely watch the supply chain, and quite often score some decent scoops.
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