Next Google tablet rumored to cost $229

Is Google looking to avoid getting dragged into a price war by positioning its next device to compete with Amazon and Apple rather than Acer and ASUS?

The second-generation Nexus 7 tablet, expected to make its official debut in July, will retail for $229, recent reports claim. According to Digitimes, Google is actively seeking to avoid direct competition with entry-level tablets that are starting to flood the market -- such as the Acer ICONIA and the ASUS MeMoPad range, which both offer well-specified sub-$200 tablets within their respective lineups, and instead is focused on the $199-$249 market segment which includes Amazon's Kindle Fire HD, which currently retails for $199.

At that price point it also hopes to steer consumers who may be considering an Apple iPad Mini ($329) towards the Android ecosystem. The claims, which come from sources within Google's manufacturing supply chain, appear to correct earlier reports that suggested Google was happy to get involved in a price war and was going to price its next tablet very aggressively for the most market disruption.

Although the new Nexus 7 is expected to get a number of hardware upgrades including a full HD screen, a rear-facing camera, induction wireless charging and a slightly thinner and lighter shell, it is the software -- namely the next version of Android -- that will really help it stand out from the competition. It will also be 4GLTE compatible for super-fast mobile internet thanks to its Qualcomm internal processor.