Asus and Google is collaborating on a 7-inch tablet that targets the Kindle Fire with a price tag of $199-249. Details are a bit limited at this point, but the tablet will be out by May, and will be the first to run the Google Play store. According to this report by DigiTimes, Google chose to work with Asus on this one because of their good product quality and ODM capabilities.
That’s all we have to work on right now, so this rumor is best taken with a pinch of salt, but an affordable Asus-built Nexus that targets the Kindle (and not the iPad) sounds like a good idea.
At least it’s not entirely unrealistic, though. Asus did show off a 7-inch tablet at CES back in January that had a great spec and a $249 price. The Eee Pad MeMO ME370T features a quad-core Tegra 3 processor, Android 4.0, and an IPS display with a 1280 x 8000 resolution – certainly more than enough hardware to go up against the Kindle Fire.