Amazon's second generation Kindle eBook reader has barely had a chance to roll off the assembly line, but there's already talk of a Kindle 3, and it might ship sooner than you think. Citing un-named "market sources," DigiTimes says Amazon plans to release a new generation of Kindle by the end of this year, one that is both larger than either existing Kindle and equipped with a touchscreen.

Such a quick followup to what's expected to see popular sales in the Kindle 2 seems unlikely, however this isn't the first we've heard of a proposed eBook reader from Amazon with large proportions. One early rumor had the Kindle 2 checking in shaped like a standard 8.5 x 11-inch piece of paper (Kindle 2 measures 8 x 5.3 x 0.36 inches), but to our knowledge, this is the first we've heard of any touch functions being implemented.

Stay tuned, as we have a feeling the rumors are just getting started.

Image Credit: Amazon