Amazon’s Kindle Fire tablet has been highly successful in the iPad dominated tablet market and if recent rumors are anything to go by, Amazon will bring two tablets, a 7-inch one and a 10-inch tablet (Although, earlier rumors suggested of a 8.9-inch tablet) to the market later this year to strengthen their position even more in the tablet space.

The rumors suggest that both the tablets will be launched in the second quarter of this year and the Kindle Fire 2 will retain the low priced hardware to retain its budget price. There are no more details on the tablets.

Amazon is also said to be shifting its focus from E-Books to tablets which should not be surprising seeing the success Amazon is having with the Kindle Fire. It is also said that they’ve reduced orders for E-Ink’s e-paper products which should be the root cause for EIH’s 4% revenues drop this month.

The production of the 10-inch tablet is also said to be outsourced to Quanta Computer and Foxconn Electronics.