Much has been heard about the successor to Kindle Fire tablet in past few weeks, especially after Google launched its $199 Nexus 7 tablet. If Amazon wants to make Kindle Fire 2 a big hit, just like the original Fire tablet, the online retailer needs to pack its upcoming tablet with improved hardware and software. And reportedly, the tablet will have Nexus 7 like hardware (or better).

According to CNET, Amazon will launch a variant of Kindle Fire 2 with 4G LTE connectivity. The new variant will have the same 7-inch display, but upgraded 1,280 X 800 pixels resolution. The display technology is known, but the tablet's display will be on par with Nexus 7, which also has the same screen size with the same resolution.

The tablet will also pack a camera for video calling. However, it is unknown whether there will also be a main camera at the back or there will just be a front-facing camera like the Nexus 7 tablet.

In addition, Amazon will also launch another variant of Kindle Fire 2 with slightly bigger display and higher number of pixels on the screen. It will have 8.9-inch screen with a resolution of 1,920 X 1,200 pixels and is likely to debut in the holiday season. If the 8.9-inch Kindle Fire is real, it will also come with LTE connectivity.

Rumors about 10-inch Kindle Fire are also hitting high, but NPD Display Search analyst Richard Shim believes that such an Amazon tablet is unlikely to debut in near future.

In case of Nexus 7, it was rumored that the tablet will pack 4G LTE radios; however, it comes in Wi-Fi only version with option for 8GB or 16GB of internal storage. Offering cellular connectivity within the same price group, Kindle Fire 2 will lure in customer who are thinking of buying the Google branded tablet.

Kindle Fire 2 is expected to debut within next 2 months, according to recent reports, which means that the tablet could be in production phase at the moment. Calling Kindle Fire 2 a "counterattack" on Google's Nexus 7 tablet, Digitimes reported that 2 million units of Kindle Fire 2 wave will hit shelves between July 31 and August 7.