Two new Amazon Kindle models will be on the market later this year, with the first coming around October, according to an insider source, Crunch Gear reported Tuesday.

The first new model is an updated version, featuring a screen the same size as the last version, a smaller form factor and an improved interface.

“Amazon has skipped three or four generations,” said the source, comparing the product with the iPod, and the new one is somewhat like the iPod Mini, Crunch Gear reported.

The second, the same size as an 8 1/2 x 11-inch piece of paper, is expected to be bigger than the current one. It will be available around early next year.

Both models should be available in multiple colors and targeted at young generations, according to Crunch Gear.

The original Kindle, launched last November, has been considered a success, although Amazon refused to provide any sales numbers.

According to Citigroup Analyst Mark Mahaney's estimates in May, Amazon may sell US$750 million worth of Kindles by 2010. Mahaney also guessed Kindle has only sold between 10,000 and 30,000 Kindles to date, suggesting that it may show similar exponential growth as the iPod did, Crunch Gear reported.