Google and AsusTek Computer have teamed up to build an entry-level, seven-inch tablet to be released sometime this May or June, according to DigiTimes.
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While the Google tablet isn’t going to offer the same power or resolution as the Apple tablet, it is expected to compete with Apple by price. It should be a bit more powerful than the Kindle Fire while costing the same or less, with a sub-$200 price range.
With this price, other tablet manufacturers may drop their prices to compete. Acer and Lenovo’s tablets are selling for about $279 and Samsung’s 16GB seven-inch Galaxy Tab is $328. Yet speculations of a “price war” are probably premature. Price wars tend to occur when manufacturers compete in a race to the bottom. Entry level tablets might be cheap, but if they under-perform, people will start to lose interest – and there will always be plenty of people ready to pay more for something that packs a little more punch.