Amazon's new Kindle Fire set to be launched in early August?

If the latest media report is to be believed, Amazon is set to launch its new Kindle Fire in late July or early August. The new Kindle fire would have features similar to the first Fire and will be built by Quaant.

The new $199 7-inch Kindle Fire 2 is likely to have a higher resolution of 1,280 by 800-pixel, according to the reports. The slate is also expected to have have a camera and physical volume-control buttons. However, no information was available on the memory size and the processor which would power Kindle Fire 2.

Amazon's move to launch another Kindle fire is seen as a counter act to Google's Nexus challenge. Recently, Google forayed into the tablet space by launching Nexus 7 that was pitted directly against Amazon's Kindle Fire and Apple's iPad.

The Nexus 7 costs $199 , the same that Amazon charges for its tablet. WIth Nexus 7 launch, Google reportedly was targeting Kindle Fire as it has been relatively successful competitors to Apple Inc.'s iPad tablet.