Increasing competition in the seven-inch Android tablet market means that the company's Nexus 7 premium slate is struggling to compete.
Therefore, according to Digitimes sources, the search giant is considering using screen size as a better differentiator and a Nexus 8 tablet could be launched this summer.
Intense competition has already seen the price of smaller tablets that run Google's Android operating system drop to the $150 mark, and although the latest Nexus 7 is considered by pretty much all tech commentators as the best Android tablet currently available, at $229 for the entry-level model it could be too expensive for many consumers, despite its hardware specifications.
Although the screen size is likely to change, Asus is expected to build the new device, just as it does the current Nexus 7. And, if Digitimes' supply chain sources are correct, then Google's decision would mirror that of Microsoft.
The company intends to launch a smaller version of its own Surface Tablet and intends to build one with an 8-inch screen so as not to compete with manufacturing partners who are now offering Windows-powered slates with a 7-inch display.
Digitimes' report goes on to claim that as well as changing its size, the next Nexus tablet could be getting a new type of processor, courtesy of Intel. If this rumor has substance then there's every chance that the tablet will -- like the iPhone 5S and iPad Air -- offer 64-bit computing power. Now that could really shake things up