Analyst Ming-Chi Kuo says in a research note to clients that Google will once again lean on manufacturing partner Asus to make the new model.
The timing could be especially fortuitous for Google, as Apple is rumored to have had to delay its planned release of an iPad mini 2 until this fall. The updated Nexus 7 is expected to include a higher screen resolution, better cameras and wireless charging at the same $199 price of the current model.
Specifically, Kuo said he expects the new Nexus 7 will sport a 1,980-by-1,200 pixel resolution screen, a 5-megapixel rear facing camera and Texas Instruments' Qi wireless charging.
Given the cost of the new features, Google is likely to lose $5 to $10 per unit sold, Kuo, of KGI Securities, said in the research note obtained by Apple Insider.
Both Google and Amazon have a business strategy of making money on T-commerce and advertising, giving them the flexibility to sell their tablets close to what it costs to make them.
TabTimes will have coverage of the key announcements from the Google I/O conference which starts Wednesday.