Last year in December when Google chairman Eric Schmidt said that "in the next six months we plan to market a tablet of the highest quality" it was not clear what he meant by that.

The rumors were rife that Google was working on its own tablet on the lines on Nexus Phones. A Google tablet is due ever since Google announced ICS, which brings all Google devices under one OS. Now reports are coming that Google has picked ASUS for their tablet and it will be priced to compete with Amazon's Kindle Fire. The tablet will have a 7-inch screen, according to reports.

Androidandme says that, "The ASUS MeMo 370T that was revealed at CES has been scrapped after Google contracted with ASUS to produce their 'Nexus tablet'. Earlier reports said the device would retail for $249-199, but we are now told the target price is $149-199. The quad-core Tegra 3 version that was previously leaked is no more. Other than the 7-inch display, no additional information has been provided on the specs."

However, this price point means the device may not feature the latest Tegra 3 processor from Nvidia. Androidandme says that the tablet may use Qualcomm's Snapdragon processor. It will be interesting to see if the tablet will have the high-end hardware to set benchmark for tablets like Nexus phones or will it focus mainly on price point to create a competitor for Amazon's Kindle Fire.