Google may have chosen ASUS to produce a Nexus-branded Android tablet, unnamed industry sources have told Android and Me. The rumored device is said to be a seven-inch model equipped with NVIDIA's quad-core Tegra 3 chipset and a stock Ice Cream Sandwich build.
The seven-inch Nexus tablet is claimed to be aimed at the sub-$200 category, making it a budget device that would compete with the Kindle Fire. The move would contrast to Google's strategy in the smartphone market, where the Nexus name is typically tied to high-end flagship handsets.
Google is said to have viewed Amazon's success in the Android tablet market as a potential threat to the entire platform, as the retailer utilizes its own app portal and focuses on Kindle functionality rather than embracing Google's full range of services and features.
ASUS and Google have yet to confirm any of the rumors surrounding an upcoming Nexus tablet. Further details, such as full hardware specs and release timing, remain unclear.