Amazon's next Fire tablet will be Android-powered, reports say

Will the next Amazon Fire tablet have a Android operating system? If that's the case, prepare for a major price hike.

According unnamed insiders that spoke to Reuters, Amazon is planning a strategic overhaul of its Fire tablets which would involve using an open source version of the Android operating system.

The project, internally dubbed "Kittyhawk," would offer a higher-end tablet to compete with the iPad and other more advanced tablets and, critically, appease consumers and app developers who are frustrated by Amazon's in-house operating system.

Currently, Amazon Fire's software is a custom version of the Android operating system that's been modified for simple functionality to fit the more budget-friendly consumer demand. Amazon's most expensive tablet, the Fire Max 11 costs $230, compared the cheapest iPad, which is $350. Amazon is reportedly discussing a $400 price point for the new Fire tablet, although further details are unknown.

Amazon has strategically sold cheaper tablets to appeal to budget-friendly consumers, but that reportedly makes the profit margins slim and the strategy has "held back sales, particularly among consumers who seek higher-performing devices," according to the report. Simpler tablets means compromising on features like battery life and screen quality.

Plus, because Amazon makes it own software for the Fire tablets, developers have to make versions of their apps that fit those specific requirements. Amazon has avoided relying on third-party software up to this point. But “consumers have always expressed a concern about not having access to the latest Android versions, not having access to some of their apps because Amazon used their own store,” IT researcher Jitesh Ubrani told Reuters.

The next Fire tablet is due next year, meaning we could see an Android-powered, more expensive Fire tablet very soon.