Amazon's next Alexa device, Echo 2, is said to be coming with a large seven inch touchscreen display.

A new report from Bloomberg says that Amazon is working on a new Alexa-integrated speaker that will feature 7-inch screen and will run an optimised version of Fire OS.

The display of Echo 2 will tilt upwards to let the user easily access information, such as news and weather etc. And it will also let you pin things like photos to the screen.

Voice interaction will still be a key component of the gadget, so goes the report, and one source said the hub will play a high-quality audio at all volumes.

According to this report, we could see this new Amazon Echo product as Q1 2017. It will also reportedly be the most expensive of the Echo lineup, with Amazon continuing to sell the existing devices alongside.

Amazon, as per The Verge, has also a software update that brought Alexa to newer Fire tablets in late October, although it's not yet clear if interacting with Alexa on this new speaker will work in a similar fashion or not.

Amazon is releasing this device when the other players are moving into this space like, Google just launched its own smart hub, Home, while Apple is rumoured to be eyeing the space with a Siri-powered device of its own. As you can imagine, this product will likely cost more than the Echo, Tap, and Dot.

Amazon's Echo has been facing competition from Alphabet's Google Home voice-activated digital-assistant speaker, as it comes under the same target audience. Echo may soon go up against Apple, which is rumored to be building a smart-home device using its Siri digital assistant.

A new touchscreen device like the Echo 2 could be Amazon's attempt to stay ahead of competition and differentiate itself from the pack.