According to the President of US retail for Staples, Amazon is supposedly getting ready to launch 5 or 6 different Kindle Fire's. Reuters interview Demos Parnenos and he stated that there are about 5 or 6 different SKU's for the upcoming Kindle Fire. SKU stands for Stock Keeping Unit, and for each different Kindle Fire there will be a new SKU, even if it's just 5 different storage sizes. But it seems that Parnenos thinks there will 3 different screen sizes on the Kindle Fire including a 10-inch.
According to other reports that we've seen recently say there will be three 7-inch variants of the device, with options for a 1024×600 and 1280×800 resolution also with or without a camera and 4G radio. Also a rumor for a midsize model in the 8.9-inch range with a 1920×800 resolution. But some rumors are suggesting that the 10.1-inch model will be the first to arrive.
When Amazon first announced the Kindle Fire last year, it had great sales. It was a cheap tablet and you could do more than just read books. You could play your favorite games like Angry Birds, or Dead Trigger. It was a cheap competitor to the iPad. But a year later, you know have a few more options for around the same price, including Google's recently launched Nexus 7 tablet, and ASUS's TF300 Transformer tablet.
Expanding the Kindle Fire to multiple sizes and features should help boost sales numbers even more. It's also important to remember that these are all rumors and none of it has been confirmed. Amazon could turn around and release just one Kindle Fire or release ten of them. But Amazon will have to directly compete with the Nexus 7 now, since they are the same price.