A rumor has surfaced that Google is producing its own tablet to compete with the Amazon Kindle Fire. The rumor has been started by DigiTimes who has quoted "sources from the upstream supply chain." While sometimes these sources are right, they are also sometimes wrong. I have a feeling that they could be wrong this time.
According to the reports from upstream sources, there will be around 600,000 in initial shipments ahead of a July launch. This rumor goes along with one that was released back in January, also by DigiTimes, which says that Google is prepping a 7" tablet running Android 4.0 ICS. That rumor put the price point at $199.
That rumor was originally saying a March or April launch date, but has now been updated to July since "design and costs did not reach its expectations." The tablet is reportedly going to be built by ASUS at Google's request. Curiously enough, ASUS showed off a 7" Tegra 3 tablet in their suite at CES and later showed it off at an NVIDIA presentation. The price then was quoted at $249, so this could possibly be the device in question.