If you thought $199 was a steal for Google’s Nexus 7 tablet, you may want to think again. Digitimes is reporting that Google and ASUS have teamed up once again and are currently working on a cheaper Nexus 7 tablet model that will go on sale for a mere $99 later this year.

Google is said to launch the $99 version of the Nexus 7 alongside an updated and thinner $199 version. Both tablets will supposedly feature HannStar Display panels, and will hit the market by the end of the year. That’s about all the known details so far, but we’re guessing Google and ASUS will somehow be forced to use cheaper components if they plan on releasing such a discounted product.

If Google can maintain the quality of the Nexus 7 in its rumored $99 model, they will absolutely blow the entire tablet market out the window. A Nexus 7 tablet for under $100 would be an amazing feat, and coming in at a fifth of the cost of an iPad, we’re sure that a lot of people would scramble for a Google tablet. However, Apple is also rumored to release a cheaper 7-inch tablet of their own shortly to compete with the Nexus 7, Kindle Fire HD, and the Nook Tablet series.

Digitimes reports that ASUS has denied the claims that they’re working on a $99 Nexus 7 tablet, so take this rumor with a grain of salt. Plus, we’re still curious as to how Google plans to sell a $99 tablet without losing a ton of money. As it stands, it requires around $150 to produce a Nexus 7, so in order to sell a $99 tablet, they’ll either have to use cheaper components or sell the device at a subsidized cost.

[device id=2841]