Amazon's 7-inch Kindle Fire ranks the second most popular tablet on the planet, a stat that has competing manufacturers considering building smaller, low-cost tablets of their own rather than pouring resources into more expensive full-sized slates. Even Google is reportedly getting in on the action, and according to several online reports, the search giant is getting ready to launch a cost-friendly 7-inch slate before the end of 2012.
Unnamed sources apparently told The Verge to expect a Google Nexus tablet in the coming months. As the story goes, it will carry a price tag of $199, which is $50 less expensive than Amazon's Kindle Fire and equal to Barnes & Noble's 8GB Nook Tablet.
Rumors of an affordable Nexus Tablet have been swirling for some time now, and from various corners of the Web. According to AndroidandMe.com, Google is counting on Asus to construct the Nexus tablet. What's more, the site says it may sell for as little as $149, though it's hard to imagine being able to do that and still flip a profit. AndroidandMe.com also reports that the Google Nexus may rock a Texas Instruments OMAP4 chip, which it can score a better deal on than Nvidia's Tegra 3 parts. Another possibility Asus hasn't ruled out is Qualcomm's Snapdragon processor.
I hope this is true, it will be an awesome tablet thats super cheap. It will sell like hot cakes. Now if they only would advertise it.
Let's consider Google's business model: If they sell the tablet at cost, and can sell ad impressions that are delivered by the tablet, they make money - and more than they would be making on a one-time profit at time of sale of the tablet.
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