Google is working on the next-generation Nexus 7 tablet as a follow-up to the successful launch of the device. ZDNET, a reliable source of news about devices, reported on Tuesday that the successor to the Nexus 7 will be available in July in the U.S. and could have a retail price of $150.

The device would have a Qualcomm chip instead of the Nvidia Tegra processor used in the original Nexus 7, ZDNET cited a Reuters report which, in turn, attributed the details to two sources knowledgeable about the upcoming device.

Other minor hardware changes to the next-gen Nexus 7 are a slimmer bezel and higher resolution screen.

Google hopes to sell about 8 million units of the device in the last six months of 2013. While the current Nexus 7 Wi-Fi only model has a price tag of £150 in the UK when bought from the Google Play store, the report said Google is considering a lower $150 price for the next-gen model and will instead supplement its hardware income with advert sales.

ZDNET added that Asus will also make the next-gen Nexus 7, although Google is known for tapping different tech firms to manufacture its Nexus-branded devices.

The entry of Nexus 7 and Kindle Fire made tablets more affordable in the Android market.

There is a third alternative, the Asus Memo Pad 7-inch tablet which sells for $149 in the U.S., but tech experts said it is not as good as the Nexus 7 in terms of specs, with the latter still tops with its 1,024x500 screen resolution.

The Asus Memo Pad features 1GHz VIA WM8950 processor with Mali-400 graphics, 16GB of storage and Android 4.1 Jelly Bean, plus a microSD slot for additional storage, which the current Nexus 7 model lacks.

However, with the next-gen Nexus 7, tech experts said companies like Asus would be forced to introduce models with prices lower than $150 to compete in the 7-inch tablet market.

RELATED STORIES