Taiwanese news source Digitimes says that Google and Asus are working together on a 7-inch tablet, which could come to target for between $199 and $249 in May of this year. The source adds that Asus was selected by for its willingness to meet Google requirements, and for its ODM capability and good product quality.
Despite this, Google was also said to have sounded out Acer and HTC about building the tablet, although Acer was ruled out early on because it was said to lack the required in-house research and design capabilities. HTC, meanwhile, apparently demanded more control over the development of the tablet and was reportedly concerned the impact a low-cost tablet could have on its brand image.
As previously reported, Google was also said to have been impressed with Asus’ Memo 370T tablet at CES in Las Vegas at the start of the year. As of now, it is believed that Google’s first tablet will be 7-inch in size, have a 1280 x 800 resolution display and run Google Android 4.0 (Ice Cream Sandwich). New rumors suggest that the tablet may also be the first to feature the new Google Play platform.