Either DigiTimes would not give hope of spreading rumors or Google is afraid of competition from Apple. Either circumstances can give birth to latest rumor.
Perhaps Google wants to compete with Apple on its own turf. A competition for iPad maybe on the cards.
According to DigiTimes, Google is planning to directly compete with the Amazon Kindle Fire as early as May. Google and Asus are supposed to release a co-branded 7-inch Android Tablet that supports the Google Play Store.
Apple has just increased the pressure on high-end Android Tablets with the $100 price-cut on the iPad 2. The low-end 7-inch segment is currently the best performing Android tablet category.
iPad 3 will be hitting stores very soon. One cannot forget Samsung’s Galaxy Tab. It is not going to be an easy road for Google.