The $199 Google Nexus 7 might already be the most affordable and probably the best Android tablet available in the market currently. However, Google might try to take things one step further with a cheaper $99 Nexus tablet. According to DigiTimes and its industry sources, Google may launch a $99 Nexus Tablet by the end of 2012 along with a new model of the existing Nexus 7 tablet.

Both the new models of the Nexus tablet shall use Twisted Nematic (TN) display panel manufactured by HannStar Display of Taiwan, which is the same company that is in the Apple’s portfolio of vendors.

The new Nexus tablet will supposedly be produced in partnership with Asus again as the OEM manufacturer. While the authenticity of the news may still be doubtful, there are expectations of some truth in the information. With rumors flying about a more affordable 7.85-inch iPad mini, Google might be attempting to stay in the competition with lower priced Nexus tablet.

The current model of Nexus 7 offers the best performance in the price segment where reviews and customer response has established it as very popular device. Google will have to try and provide the same price to performance ratio along with good design and quality for its cheaper Nexus tablet offering in order to satisfy its potential customers.