Asustek is prepping a sleek, Android-powered tablet that is expected to cost less than $400.
The company is also slated to launch a higher-priced tablet PC in December or January which features a 12-inch touchscreen, Windows 7 and an Intel Core 2 Duo processor.
According to Asus CEO Jerry Shen, the Eee Pad EP121 will cost significantly more than the iPad because it is bundled with a docking station that transforms the tablet into a full-blown laptop computer.
"If you want to compete with the [Apple] iPad, you have to do more than just be less expensive," Shen told PC World.
"You have to offer more features. We want to spend more time perfecting the [Eee Pad] before we launch. We're looking more at Q1 to launch the devices."
Shen added that Asus also plans to debut a second Eee Pad in January with a 10-inch touchscreen, ARM processor, Windows (embedded) and a $400-$500 price tag.