Amazon will launch a Kindle Fire successor in Q3 2012, and the device will feature an improved display resolution of 1280x800.

That's according to AllThingsD's sources, who have also said that the new device will also be slimmer and lighter than its predecessor, and feature a built-in camera.

The headline improvement is its display, though. The current Kindle Fire features a 7-inch 1024x600 screen, which is an aspect ratio of 1.71.

If the Kindle Fire 2 were equipped with a 7-inch 1280x800 display, it would not only result in noticeably sharper images, but it's also a more widely used aspect ratio: 1.60.

Three-horse race?

Google's Nexus 7 also boasts a 1280x800 display, built-in camera, and slimmer proportions than Amazon's current Kindle Fire. And since Google is expected to start shipping its $200 tablet to consumers by mid-July, it seems certain that the Jelly Bean slate will beat the Fire 2 to market.

AllThingsD's sources believe Amazon's tablet refresh will launch late in Q3 2012, while China Times has claimed that the device will hit shelves by the end of August.

Furthermore, persistent rumours claim that Apple is planning to tackle the Fire and Nexus head-on, by launching a competitively priced iPad Mini in 2012.

[source: AllThingsD]