The next Kindle Fire is eyeing a July 31 launch date.

CNET just reported that Amazon’s next version of the widely popular Kindle Fire, otherwise dubbed the “Kindle Fire 2″ or the second-generation Kindle Fire, would unveil next month. The publication cited “a credible source” but could not confirm the summer date, and it pointed to DigiTimes for specs, which claimed the rumored 7-inch eReader will release with a $199 price tag and 1,2800-by-800 pixel display at the beginning of the third quarter.

According to CNET:

The DigiTimes article cited the usual sources in the “upstream supply chain” and talked about how Amazon would reduce the price of the current Kindle Fire to $149. It also speculated that Amazon’s long-rumored larger tablet is still on hold but that new e-ink Kindles with integrated lighting were expected to be released alongside the Kindle Fire 2 (or whatever Amazon chooses to call it).

Our source didn’t mention the higher resolution display but did say that the new tablet would have a camera and physical volume-control buttons (many users complained that the Kindle Fire only has on-screen volume controls).

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The rest of the story is continued speculation. There are no firm details on processor, memory, or expansion, but “additional sources” led CNET to believe Amazon will also improve its existing $79 Kindle, and not issue a new, entry-level eReader:

In speaking with additional sources, it seems likely that Amazon will follow a similar product upgrade map to Apple, adding features along with design and performance improvements but maintaining the similar price points. For instance, we don’t expect that Amazon will put out an e-ink e-reader for less than $79 (the current entry-level Kindle sells for $79). Rather, it will simply improve upon the existing $79 Kindle. (Of course, you can get refurbished Kindles for less than $79, but we’re talking list price here).

Unlike the Kindle, the Kindle Fire is a full-color, 7-inch multi-touch display with IPS technology that runs a forked version of Google’s Android operating system. The device released in November 2011 and included access to the Amazon Appstore, streaming movies and TV shows, and Kindle’s eBooks.

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