Latest report from DisplaySearch indicates that Amazon is working on a new 10.1-inch Kindle Fire. According to the report, Amazon will unveil this new 10.1-inch Kindle Fire later this year. The new tablet is expected to be a major upgrade to the current version.

Amazon has already released two versions of Kindle Fire, the 7-inch Kindle Fire and the 8.9-inch Kindle Fire. Now it is time for the company to move up to the 10.1-inch screen level. DisplaySearch analyst Richard Shim believes that Amazon will come up with a 10.1-inch Kindle Fire which will take on rival tablets like the Apple iPad and Google Nexus 10.

Shim referred to the fact that Amazon has already released two models of Kindle Fire and then said that Amazon is “moving up to the 10-inch class.” This new 10.1-inch model is also expected to have a very good hardware configuration. According to the information provided in the report, this new Kindle Fire will have a 10.1-inch display with a resolution of 2560 x 1600 and pixel density of about 300 pixels per inch (PPI). So when it comes to display, the new Kindle Fire will be as good as the Google Nexus 10.

The interesting part starts when we get to know the possible specs of the 10.1-inch Kindle Fire. The report from DisplaySearch did not give out any specific details about the hardware specs, but we do believe that Amazon will be looking forward to come up with a really powerful device.

Another thing we still have to wait for is the official announcement from Amazon that a 10.1-inch Kindle Fire is actually coming our way. Until that does not happen, there is no saying whether the 10.1 Kindle Fire is a fact or fiction.