Reports began breaking out today that Amazon has a bigger Kindle Fire in the works, even before the original 7 inch model is actually available.

The rumor of a larger Kindle Fire appears to have originated at Digitimes, who quotes unnamed sources within Amazon’s supply chain.  Amazon remains tightlipped, of course.

The talk is that the next generation Kindle Fire will feature an 8.9 inch screen. It’s also said that Amazon originally had planned for a 10.1 inch screen, but scaled-back. The sources also indicated that Amazon plans to launch a 9.7 inch and a 10.1 inch tablet in 2012.

Meanwhile, the original Kindle Fire, still only in pre-order status, has become the most popular item in Amazon’s electronics section. According to Amazon, it will hit its virtual shelves and begin being shipped on November 15. Some analysts are predicting that Amazon will sell more than 5 million Kindle Fires, at $199 apiece, before the end of the year.

The Kindle Fire may be getting some competition on Monday. Barnes and Noble has a major press event planned in which it’s expected they will introduce their new Nook Tablet. The press event is scheduled for 10 AM in New York City. We’ll find out then just how stiff that competition may be.