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Rumors have circulated for weeks that is working on a new tablet computer, a larger Kindle Fire that would compete with Apple’s iPad. Now, here comes more ammunition that the device is actually in the works.

Kindle Fire

In an in-depth story today in The New York Times, reporters Nick Wingfield and Nick Bilton write that the online retailer is working on a new larger device. Previous reports had suggested that the device will have a 10.1 inch screen and could be released later this month.

That would be slightly bigger than the iPad, which has a 9.7 inch screen. And just as Amazon kicks around a new model, Apple is reportedly working on a new iPad that would have a 7.85 inch screen.

The new devices come as Microsoft and Google both look to enter the market. Google just released its Nexus 7 tablet last Friday, while Microsoft touted its new Surface device at an event last month.

There’s certainly a degree of tablet mania right now in the computer biz, creating all sorts of interesting new dynamics. (Can Microsoft sell its own branded tablet while keeping its hardware partners happy? Will be able to compete with Google’s similarly priced Nexus 7?)

Previously on GeekWireKindle Fire vs. Nexus 7: A detailed cost breakdown of the two tablet computers

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