Rumors previously indicated that Amazon will unleash a 10-inch tablet, making inroads into the larger tablet domain. However, a recent report from CNET suggests that Amazon will instead launch two new redesigned version of its 7-inch Kindle Fire.

Amazon is holding an event on Sept. 6 in Santa Monica, which is expected to heat up the tablet battle with the launch of its new Kindle Fire tablet. The new Kindle Fire rollouts are expected to rival Google's Nexus 7 offering. Since its launch in July this year, the Nexus 7 has given stiff competition to Amazon's current Kindle Fire.

Amazon will have to pull out all stops and do something really extraordinary to pip competition from the Google challenger. The two devices are evenly matched when it comes to pricing. The current Kindle Fire sports a $199 tag as does rival Nexus 7. By comparison, the features on offer leave a lot to be desired. Kindle Fire fans would expect the new devices to have a faster processor, refined user interface, camera, physical volume controls, additional storage option, and HDMI connectivity. However, nothing has been confirmed yet.

The honeymoon period of Amazon's Kindle Fire is seemingly over. With the recent arrival of Google's Nexus 7 and the anticipated iPad Mini, the device will face stiff competition in the 7-inch tablet market. Amazon will have to wait and see if the new devices will turn around the fortunes of the company.