Google eyeing development of $99 Nexus 7 tablet

Though Apple’s iPad continues to dominate the tablet landscape, competition in the tablet space has never been fiercer. The relatively new Nexus 7 tablet from Google has gotten rave reviews and let’s not forget about Amazon’s ongoing successful efforts with its lineup of Kindle devices.

But the market is poised to become even more muddled come this holiday shopping season in light of rumors that Apple is planning to release a new 7.85-inch iPad Mini. Rumor has it that it will retail for $199 or so and will be positioned to take away any price-based momentum tablet competitors have thus far been able to use to their advantage.

But not one to sid idly by on the sidelines, a rumor emerged today claiming that Google is currently working on two tablet devices with Asus and that they are currently planning to release a $99 Nexus 7 tablet before the end of the year.

Google is reportedly making two new versions of the Nexus 7 that are expected to be thinner, and will use TN panels made by Taiwan-based panel maker HannStar Display, according to industry sources.

One of the models will be priced at US$199 while the other will be priced US$99, and both models are expected to hit markets by the end of 2012, added the sources.

And so the price undercutting has begun! Though things really got underway when Amazon recently lowered the base price of its Kindle Fire tablet to $159, well below the $199 for the Google Nexus 7.

It’s hard to imagine Google or Asus making much of a profit, if at all, on the hardware sale of a $99 tablet. And it’s not as if they sell in Apple-like volumes and can therefore command favorable component pricing. Indeed, it’s been reported that Amazon actually loses money on each Kindle Fire it sells, only to recoup it later via Amazon Prime subscriptions and media downloads.

Either way, the holiday shopping season as it pertains to tablet is bound to get interesting real soon.

via Digitimes