Amazon may be planning to launch a new, larger version of their popular Kindle Fire tablet later this year. The new 10.1-inch Kindle Fire would launch alongside the second generation 7-inch Kindle Fire sometime in the second half of the year.

According to DigiTimes, the launch of a 10.1-inch Kindle Fire signals a shift in Amazon’s focus for the device. Amazon has previously focused the entire Kindle line – including the Kindle Fire – on the e-reader market that Amazon effectively created with the original Kindle. A new 10.1-inch Kindle Fire could mean that Amazon is more aggressively targeting the tablet market, perhaps in a desire to more directly compete with Apple’s new iPad.

DigiTimes also reports that while maintaining its orders of touch screen panels from various manufacturers, Amazon has been reducing the number of e-ink screens (i.e., for the other Kindle models) it orders from E Ink Holdings. The Kindle Fire, which was released late last fall, made a strong showing over the 2011 holiday season, selling nearly 4 million units.

What do you think? Would you like to see a 10.1-inch Kindle Fire? Let us know what you think in the comments.