Amazon to release three new Kindle Fire models

Close on the heels of the iPad 3 launch, Amazon has announced that it will be releasing three new models of Kindle Fire later this year.

Close on the heels of the iPad 3 launch, Amazon has announced that it will be releasing three new models of Kindle Fire later this year.

The updated models will be 'a low-end 7-inch, 1,024-by-600 model; a midrange, 7-inch model with a higher 1,280-by-800 resolution; and a high-end, 8.9 inch tablet with a 1,920-by-1,200 display', reports PC Magazine.

According to reports, Kindle Fire was manufactured by Quanta, but Hon Hai (trading as Foxconn) has been called on board to assemble the low-end 1,204x600-resolution tablet.

This is seen as a cost-cutting measure, 'Amazon sells the Kindle Fire at a loss of between $3 to $18, depending on whether you believe RBC Capital Markets or an In-Stat teardown report. Lowering the costs further could mean that Amazon would recognize some profit on sales of the device, rather than making it up through sales of apps and media,' reports PC Magazine.