Amazon’s 10 inch Kindle Fire tablet coming in time for the Holidays?

Amazon Kindle Fire

Sure, Amazon just finished introducing the world to its shiny new 7 inch tablet for reading eBooks, watching movies, listening to music, and running Android apps. But there’s a rumor going around that the Kindle Fire is just the first color Android tablet from Amazon.

The folks at DigiTimes report that Taiwanese equipment maker Foxconn could have the contract to build a new 10 inch tablet for Amazon — and that it could be released before the end of 2011, in time for the holiday shopping season.

The 7 inch Kindle Fire is reportedly built by Quanta, a different Taiwanese manufacturer — and the same company that produced the BlackBerry PlayBook tablet for Research in Motion, which explains why the two devices look so much alike.

There’s no word on how much the rumored 10 inch tablet will cost or what, if any, new features it will have that are missing from the 7 inch Kindle Fire. Personally, I think a 7 inch display is better for reading books than a 10 inch screen. But while Amazon’s other Kindle products are designed exclusively for reading, the new tablets also need to handle video playback, gaming, web browsing, and other activities — so it would make sense for Amazon to launch a 10 inch model.