Amazon has been busy lately. The online retailer has been working hard to produce some new tablets that they’re hoping will compete with some of the hottest tablets already on the market. There are lots of rumors flying around about what Amazon might come out with, but one thing is for certain: you will be seeing some new tablets from Amazon within the next few months. In fact, you may see even more than two tablets and you’ll definitely see some price drops.

Why is Amazon scrambling to produce new tablets and drop prices? Well, for the same reasons that every other manufacturer is doing the same thing. Summertime is upon us and that means that sales are likely to be a bit slower. So, tech manufacturers are dropping prices and creating devices that you can’t live without. The question is, do you think you can live without what Amazon is about to create? Here are the details:

A Smaller 7-Inch Tablet and Lower Fire Prices

Amazon is currently working on a 7-inch tablet, sources say. Portability when it comes to a tablet is super important, and sometimes tablets that have a screen larger than 7 inches aren’t all that portable. So, Amazon is attempting to fix this problem with a 7-inch tablet. Even though this tablet is set to pint-sized, rumor has it that the new tablet will have a better resolution than current Amazon tablets. In addition, the new seven incher will be sold at jus $199 -- a price that might be hard to pass up.

What might a new seven-inch screen mean for the existing Fire? Well, it would make very little sense for Amazon to create a smaller tablet with a lower price and still sell the current Fire at a high price. In short, Amazon will have to drop current Fire prices, and those prices might fall down to $150 or so. When this happens, you’ll have a choice between the new seven-inch Fire and the older, larger, Fire. At that point, it will be all a matter of pricing, but keep in mind that companies have been known to drop support for older devices.

Pricing and Release Predictions

It is rumored that Amazon will be releasing the new seven-inch Fire sometime “later this year,” which tends to mean right around the holiday season. After all, Amazon had amazing success last year with the release of new Fire devices, so it would makes sense that the company would be trying to replicate this craze once again. However, that older Fire will likely go on sale sometime this summer. This way, Amazon can unload some current Fire inventory, but you now know that a smaller and better Fire is on the way, so you may or may not want to jump on those lowered prices.

In addition to the smaller Fire, Amazon might also be up to some other tricks. It’s tough to pinpoint reliable rumor sources at the moment, but it seems as though you might be seeing a lot of Amazon over the next few months.