Some say that the Kindle Fire still does its justice.

"There is something exciting about Kindle Fire too and this is where it beats Nexus 7 - it is the Amazon app-store for e-books, music, movies and videos that are loaded enough to keep a user happy and busy for a lifetime. And yes, Kindle Fire does boast of an excellent HTML5 browser (Amazon Silk)," a report from Mobile & Apps said.

Also, some say the Nexus 7 is not all that great like everyone is making it out to be. "You can't add shortcuts and widgets by pressing on one of the five home screens -- that will only get you an option to change the wallpaper," Wired.co.uk said. "And when you turn it on its side, it won't automatically switch to landscape mode when you're on one of the five home screens."

The Nexus 7 runs on Jelly Bean, the latest version of Google's Android software (Android 4.1).

Reports say that the Kindle Fire recently acquired the Android 4.1 Jelly Bean port.

According to ZDNet, earlier last week Google open-sourced Jelly Bean for third-party modification. Now, Kindle Fire owners can install Jelly Bean on their tablet.

Over on XDA Developers, forum user "Hashcode" revealed that he has ported Google's latest mobile OS to the device, ZDNet reported.

Even though it looks like they are working together in this instance, the competition is not over.

Reports said that Amazon is coming out with Kindle Fire 2, which will be thinner and lighter than the original. The new Kindle will be fit to display a 1280 x 800 pixel resolution, which will make it sharper and more vibrant. No one knows the price as of now. This tablet is expected to release on August 7 of this year, reports said.