This is a rather curious rumor first because it calls for a new and cheaper Kindle Fire at $149. As the story goes, Amazon is going to need to cut more into the competing budget tablet market, so they'll release a less capable version of the Kindle Fire. It's predicted to have the same screen resolution, but use cheaper components. Amazon is also rumored to be releasing another 7" KF next quarter, Digitimes wasn't in he mood to invent new specs for the device, but they did say that it would have screen resolution of 1280x800 and a price of US$199.
What's even better is that Digitimes crystal ball also showed a 10" and an 8.9" Kindle Fire coming this fall. The 8.9" is said to be dead now as Amazon shifted their focus to the 10" model, but that larger one is supposed to be out in time Christmas. And so is the new ereader:
As for e-book readers, Amazon is currently developing a 6-inch backlight-unit-module-integrated model that is set to launch in the third quarter at the earliest, noted the sources, adding that Amazon will also release e-book readers with other sizes in the second half of the year.
See, that's why I don't trust Digitimes. Even on the rare occasions that they get a rumor correct, they still get basic facts wrong. And for the most part they're wrong. Digitimes has a terrible success rate when it comes to the rumors they generate on a weekly basis.
Frankly, I don't know why anyone listens to them.