Amazon was the first company to bring a low-cost Android tablet to the masses, with the Kindle Fire costing just $199. The margins on the tablet were non-existent, although the going theory is that Amazon recoups the costs thanks to its large content libraries accessible via the Kindle Fire. Google has shaken things up with the introduction of the Nexus 7, a quad-core tablet with the same $199 price point, although rumors indicate that Amazon is preparing its answer to Google's tablet with a follow-up to the Kindle Fire.
AllThingsD has heard from sources familiar with the matter that Amazon is preparing a Kindle Fire sequel for the second half of this year, with current information indicating a third quarter launch. The tablet will have an improved display with a 1280x800 resolution, and add a front-facing camera for video calls. The tablet is said to be thinner and lighter than the original as well.
Developers who have been informed of the new Kindle Fire have been instructed to build their apps to make use of a 1280x800 resolution instead of the 1024x600 found on the current Kindle Fire. The display may be sharper as a result, but it will also have a different aspect ratio - the same as the Nexus 7, in fact. Assuming the size of the Fire remains the same, the pixel density would see a bump to 216 PPI.