They're reporting a confirmation of past rumors that a larger Kindle Fire is currently under development at Foxconn, the Chinese gadget maker who also assembles the Kindle. The 10" Kindle Fire is supposedly being assembled now and is due to ship some time before Christmas.
There's no details on the hardware specs but it seems likely that the 10" Kindle Fire will be very different from the model that was announced this week. The 7" model was made by Quanta, and it clearly is a close relative of the Playbook, RIM's Blackberry tablet.
While I wouldn't be surprised at a 10" Kindle Fire, I don't expect it before Christmas. If Amazon planned to ship it that soon then Jeff would have had it on display at the press conference Wednesday. The larger kFire would need to ship in late November, just like its smaller brother. Also, a sudden appearance of a new kFire tablet would cause an upset in the supply line. Lots of people would decide to cancel their orders for the smaller model and get the larger one instead. That could stick Amazon with an over-full warehouse as deliveries from the factory backed up.
Even so I expect Amazon to eventually unveil a larger Kindle Fire. It will likely launch in March or April, and I expect Amazon to schedule their event for the week right before the iPad 3 launch event.
What do you think?