Washington, D.C. (July 10, 2012) -- Amazon is preparing to launch a new Kindle Fire that could include an improved, High-Definition display, writes AllThingsD.com

The web site reports that the new tablet is likely to launch in the second half of the year, and most probably in the third quarter. Other reports have suggested it will launch as early as next month.

The current Kindle Fire features a display with a 1024 x 600 display, but the new edition reportedly will offer a 1280 x 800 pixel resolution. While that doesn't challenge the Retina Display of Apple's new iPad, it could satisfy tablet enthusiasts who are looking for a cheaper alternative to the iPad, but one with an improved display.

AllThingsD.com also writes that the new Kindle Fire will have a built-in camera and a different aspect ratio.

“The really interesting thing here is that the screen shape is changing slightly: From an aspect ratio of 1.71 (tall and narrow in its standard Portrait mode) to an aspect ratio of 1.60,” DisplayMate President Raymond Soneira told AllThingsD.

The new Kindle Fire would likely further heat up competition between tablet makers. The Wall Street Journal reported last week that Apple's suppliers are preparing for a mass production of a smaller-screen iPad with a likely launch coming as early as this fall.

The screen for the so-called mini iPad would likely be under eight inches, as opposed to the current 9.8-inch iPad. The new device would target a slew of smaller tablets on the markets, including Amazon's Kindle Fire.

WSJ reports that the iPad commanded a 62 percent share of the global tablet market in 2011, but the category is quickly becoming more competitive and varied with tablets in several sizes.

The Amazon Kindle Fire has enjoyed success in part because some consumers say it's easier to watch video on the go because the screen is easier to hold in their hands. Apple's mini-iPad could tap this growing market.

The WSJ article does not offer any details on pricing for the mini iPad, but it's likely to be comparable to the Kindle Fire, which is $199.

Comment on this story below.