Google is rumored to be planning two new versions of its 7-inch tablet, the Nexus 7, with a speculated starting price of $99.

DigiTimes reports that one of the new tablets may be priced at $199 and the other at $99. Both new models are purported to be released at the end of the year.

If rumors are to be believed, then the new Nexus 7 models will be thinner than the current versions, and will use a display made by Taiwanese panel maker HannStar Display.

Both tablet users and tech pundits have embraced the current Android 4.1-powered Nexus 7. A 1.3GHz quad-core Nvidia Tegra 3 processor powers the existing Nexus 7, which sports a 7-inch capacitive display with multitouch, and the resolution of the device is 1280 x 800 pixels. The current Nexus 7 offers options for 8GB and 16GB of on-board storage and 1GB of RAM. The Nexus 7 measures 7.82 x 4.72 inches and sports a 1.2-megapixel front-facing camera. It runs on a 4325mAh battery, which supports up to 8 hours of continuous usage.

If the prices of the new Nexus 7 will be reduced as rumoured, then it is possible that Google may compromise on the device's hardware. However, if Google introduces the new $99 version with only minor hardware changes, then the Nexus 7 may send rivals looking for cover.

Google's Nexus 7 currently faces stiff competition from Apple's iPad and Amazon's Kindle. Speculations also suggest that Apple may launch an iPad Mini soon, which will give fierce competition to the Nexus 7. Recently, Barnes & Noble unveiled its new 7-inch tablet, the NOOK HD, and Chinese tablet maker Eken is preparing to launch its 7-inch tablet, B70, in the U.S. soon, increasing competition in the smaller tablet domain.