A new report says Google plans to ship a successor to the original Nexus 7 by this July for the same $199 price of the current model. But the Reuters report, citing unnamed sources, says Google might also choose to bring the new Nexus 7 out at $149 and discontinue the current model.
Amazon’s lowest price Kindle Fire sells for $159.
The other bit of news in the report is that Google will replace Nvidia’s Tegra 3 chip that powers the current Nexus 7 with Qualcom’s Snapdragon processor.
Reuter’s sources said the redesigned Nexus 7 will also have a higher screen resolution and thinner bezel design.
Unlike Apple and most other tablet vendors, Amazon and Google are far less interested in making a profit on hardware sales than they are selling online services and advertising, so both sell their tablets near cost.