The Kindle Fire HD features an 8.9in (22.6cm) screen, pitching it against Apple's slightly larger iPad - the bestselling tablet on the market.
A second device is an upgrade to its original model, with a 7in screen.
Amazon recently said the first Kindle Fire had captured 22% of the US tablet market - the only country it was sold in.
"The original Kindle Fire was about testing the water, though it was very successful," Chris Green, principal technology analyst at Davies Murphy Group Europe told the BBC.
"Now it's about moving it from mainly being an overblown ebook reader to a more fully featured tablet that ties more closely into Amazon's cloud infrastructure.
"Of course its going up against a whole myriad of Android based tablets including Samsung's Galaxy Note and Google's Nexus product, and on the horizon Windows 8 tablets could potentially offer a challenge as well."
Chief executive Jeff Bezos also unveiled a new dedicated e-book reader called the Kindle Paperwhite which will be released at the start of October.
It can display sharper text and more detailed images than previous models and features a "patented light guide" to illuminate its touchscreen, allowing it to be used in the dark.
The model - which is available with built-in 3G connectivity at an extra cost - will face competition from the existing Nook GlowLight and the upcoming Kobo Glo e-readers which also feature a built-in light source.
"Amazon has a massive advantage in the UK because of its brand name and the fact it will have its devices promoted and sold in Waterstones book stores later this year," Philip Jones, deputy editor of the Bookseller magazine said.
"But I wouldn't write off the Nook or Kobo at this point.
"Barnes and Noble has done well in the US, and, if it puts a bit of oomph behind the Nook's launch, it could gain some traction - though that will be a big ask. And Kobo has the cash of a rich parent, Japan's Rakuten, to support it."
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