Google to launch new Nexus 7 tablet in July - Telegraph.co.uk

A Google spokesman declined to comment on its new tablet. Qualcomm and Nvidia also declined to respond to questions.

Google introduced its first tablet last June, hoping to replicate its smartphone success in a hotly contested market now dominated by Kindle Fire and iPad.

The Nexus 7 joined the ranks of smaller, 7-inch tablets popularized by Amazon and Samsung, among others.

Google may choose to sell the new gadget for $199, the same as the first generation rolled out last June, while the old model may be discounted, one of the sources said. Alternatively, the new tablet could be priced more competitively at $149 and the previous model discontinued, the source added.

The cheapest iPad mini goes for more than $300.

"This [Google's] is the 'zero margin strategy'," said Fubon Securities analyst Arthur Liao. "Ninety-seven percent of Google's revenue comes from advertisement, so it needs to sell more mobile devices in order to reach more consumers."

The Internet search giant, which has never disclosed tablet sales, plans to ship six to eight million of the new Nexus 7s in the second half of this year, the sources said. That compares to an estimated 4.6 million Nexus 7s sold in the same period last year, according to Enders Analysis mobile industry analyst Benedict Evans.