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After briefly being seen as an ally of Apple’s goal towards crushing Android, Amazon’s Kindle Fire tablet is back to threatening iPad sales. A Wall Street analyst now says 26 percent of people considering buying the Fire are putting on hold purchasing the Cupertino, Calif. tech giant’s tablet. What’s more, consumers are more likely to buy the Amazon tablet than the iPad.

The Kindle Fire may be shaping up to be the first real device to challenge the iPad’s share of the tablet market but it’s not going to go unchallenged: book retailing giant Barnes & Noble have just announced the next generation of their own Android-based reading tablet, and unlike the Kindle Fire, its specs match and even exceed the iPad 2’s for half the price.

Remember HP’s fiasco with the Slate, then the TouchPad? You’d think the company would run from the tablet market like a Silicon Valley investor with his hair on fire — but you’d be wrong.

Its first generation Kindle Fire hasn’t even launched hit store shelves yet, but already Amazon has the Foxconn factory in China knocking up its successor, the Kindle Fire 2, with plans to ship the device during the first half of 2012.