The California based Internet search giant is reportedly working on a cheap android tablet that the company will release with a co-partnership with Asian tablet manufacturer - Asus.

According to a latest report by Wall Street Journal, Google may open its own online store to sell its co-branded Nexus tablet directly to the users, like Apple and Amazon are selling iPad and Kindle tablets respectively. Google will also sell Motorola tablets - Xoom and Xyboard - through the online store after the company gets clearance on its $12.5 billion Motorola's acquisition. Direct-to-customer approach has more advantages then selling through retail stores. By eliminating middlemen from the way, the tablet will generate more revenue as Google will not have to pay commission to retail stores for selling its tablet. And that is why Google is subsidizing the tablet and keeping its price as low as possible, so that it becomes affordable, along with packing some stunning features.

Google is expected to make its debut in the tablet market with its 7-inch tablet, which is likely to be priced under $200. Earlier, it was rumored that the tablet will be equipped with quad-core processors. But the latest reports suggest that it will be powered by dual-core processor as Google may cut down the price further to $150. The device will run Android v4.x Ice Cream Sandwich. But we will also not be surprised to see the next generation Android OS Jelly Bean running on the new tablet.

Google aims to take on Apple with its new tablet. Also, low-end tablet manufacturers like Amazon will be outgunned by the upcoming Nexus tablet. Amazon's $199 Kindle Fire, despite lacking premium offering, surprised the world with its sales in Q4 2011. Amazon made it clear that users want budget tablets. However, not just entry-level market, Google Nexus tablet can pose a serious threat to Apple's new iPad, whose price starts at $499.

Back in 2010, Google released its first smartphone in partnership with HTC - Google Nexus. And, we all know the revolutionary Samsung Galaxy Nexus released last year that uncovered Google's latest operating system - Ice Cream Sandwich. The Internet search giant is already releasing smartphones in partnership with various smartphone manufacturers. So an Android tablet was something expected. The name of this tablet could be Asus Transformer Nexus or Asus Google Nexus or something similar.

The tablet will be released later this year, probably in Q3 2012.

(reported by Johnny Wills, edited by Surojit Chatterjee)

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