Google has traditionally designed its Nexus smartphone lineup to take full advantage of the Android operating system, and will likely to the same with its rumored Nexus tablet.
Currently, reports indicate that Mountain View has teamed up with industry veteran Asus to build a cheap, yet capable tablet that is expected to go head-to-head with Amazon's $199 Kindle Fire.
True, the advent of the Google Nexus tablet may be be making some Android tablet manufacturers nervous, but personally, I believe the market could really use some high-quality competition.
Frankly, I think the Google Nexus tablet could be a winner - assuming Google and Asus are capable of building a table that performs on par with the Kindle Fire at a reasonable price point and offers access to the full Android OS.
Of course, I don't think Google's rumored Nexus tablet would be in the same league as Apple's wildly popular iPad, but that probably isn't Mountain View's goal to begin with. Then again, a reasonably priced Google-branded device that performs as well or better than the Kindle Fire would in all likelihood cut into the sales of Android (partner) tablets, including the Galaxy Note from Samsung, Motorola Xyboard, and the Galaxy Tab.
So far, it seems as if the only market Android tablets can successfully compete in the low-to-medium space. As much as I'd like to see a Google Nexus tablet with decent performance sell for the same $199 Fire price point, Mountain View may very well throw Amazon a bone and price the tablet somewhat higher.
However, another rumor claims Google's tablet will weigh in at $199. Considering Amazon doesn't offer the full Android experience, Google may not feel it has any reason to go easy on the Seattle-based corporation. As such, a Google Nexus tablet will likely spell trouble for Amazon's Kindle Fire.