The tablet wars are heating up with major players leaving no stone unturned to seal their place in the market. After rumors of Amazon working on its first-ever smartphone, the online retail giant is simultaneously gearing up to release its Kindle Fire 2 in fall this year.

According to a report by the China Times, Amazon is all set to unveil its Kindle Fire tab successor - Kindle Fire 2 - on August 7, 2012. The improved Kindle Fire 2 is seen by tech gurus as Amazon's attempt to counter the recently released Google Nexus 7.

The Kindle Fire 2 is reported to sport an updated 7-inch screen and will continue to be under the wings of the Taiwanese ODM Quanta. The device will have a revamped exterior with a sturdier metal case replacing the existing one. An unnamed Chinese company is said to be manufacturing the batteries for the tablet.

A report by CNET indicated that Amazon planned on announcing the Kindle Fire 2 on July 31, 2012. The report goes on to say that according to predictions by NPD DisplaySearch analyst Richard Shim, as many as four new Kindle Fire 2 models are in the anvil, based on supply chain data.

Shim claims suggest that two of the four models would be ready by August this year. The two August launch Kindle Fire 2 models will have a 1024x600 display with no camera and a 1280x800 display with a camera, respectively.

The third 7-inch Kindle Fire 2 tablet, which will be a 4G, will feature a 1280x800 display and have a camera. The production for this version will likely begin in September. The penultimate Kindle Fire 2 will be followed by the comparatively colossal 8.9-inch Kindle Fire 2 wonder. This variant will be produced towards the end of the year and will sport a 1920x1200 display.

The specs of the new Kindle Fire 2 get better with this version. A display with a pixel density of 216 pixels per inch (PPI) will replace the current 170 PPI. This density puts the Kindle Fire 2 at par with the Google Nexus 7 and only paces behind the new iPad. Details on the processor are still shrouded in mystery. However, it is likely that either a Texas Instruments OMAP CPU or a quad-core Nvidia Tegra 3 chip will power the tab.

Nearly a year old, the original Kindle Fire had set the markets ablaze, capturing nearly 54 percent of the market share in just a few months. With speculation rife that Amazon may slash its existing Kindle Fire price to $149 post the new model's release, the company's rivals are going to be in for some rough weather.

Even though the launch of four not-so-different tablets seems a little baffling, Amazon is set to become formidable competition for rival and tab market leader Apple. The impending iPad Mini, amongst other tablet wonders, could well be in for some tough competition.