Reports of a larger Kindle Fire and a smaller iPad have surfaced in recent months, and a report today from The New York Times adds momentum to each rumor. The Times says that Amazon is working on a new version of the Kindle Fire with a larger display, according to "a developer briefed on Amazon's plans." While the report does not specify the new display size, earlier reports suggest that Amazon may introduce a 10.1-inch model later this year, with a release date rumored to be as soon as July 31st.
The Times also says that Apple is preparing a new tablet with a 7.85-inch display, following similar reports from the Wall Street Journal and Bloomberg that said a smaller iPad between 7 and 8 inches would launch later this year. The Times says that the new tablet is "likely to sell for significantly less than the latest $499 iPad," and that it's "expected to be announced this year."