Amazon is working on a larger version of its Kindle Fire mini-tablet computer, which is itself a larger and more complex version of a Kindle e-reader (which is itself a larger more complex version of a book). This according to a report in the New York Times, citing people who are too scared to go on the record but not scared enough to not talk to the New York Times about Amazon’s plans. It’s a bit of a head scratcher why Amazon thinks this will work, given the somewhat lackluster sales being mumbled about for the Kindle Fire but perhaps by coming in with something bigger and cheaper (Amazon often sells at a loss, figuring it will make it up in sales of apps, videos, and books) the company can at least chip away at the iPad.

Meanwhile, Apple is zagging while others zig, says the Times, which is the latest to run with reports that Apple is getting ready to launch a smaller version of the iPad to compete with the Kindle Fire. Amazon and Apple have so much in common even though they fight. It’s adorable. They’re going to start screaming at each other and then totally make out.

Apple’s Kindle Fire killer would join Google Galaxy Nexus 7 tablet, which launches today, and the looming Microsoft Surface tablet, out sometime this fall.

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