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Amazon is reportedly increasing its orders for its Kindle Fire tablet to 5 million units following continued “strong” early demand for the 7-inch device. But could greater demand for the iPad rival actually backfire on the e-bookseller?

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.