Google has slashed the price tag of its Nexus 4 smartphone, now selling the 8GB model for $199 and the 16GB one for $249.

Amid various rumors and speculations regarding the next-generation Nexus smartphone, the new discount for the Nexus 4 only heightens anticipation. Google is yet to announce the next Nexus handset, currently dubbed the Nexus 5, but this move could be interpreted as a way to clear off inventory to make room for the new iteration.

Google launched its LG-made Nexus 4 back in November 2012 and faced overwhelming demand. The smartphone became an instant hit due to its good specs and affordable price tag, retailing for $299 (8GB) and $349 (16GB), unlocked. Both the 8GB and the 16GB models sold out within minutes of going on sale and the Google Play store constantly listed the smartphone as out of stock.

Nexus devices are generally in high demand also because they offer the Nexus experience, which means getting the latest version of Android as soon as Google releases it.

The Google Nexus 4 smartphone was already a very popular device, but the new $100 price cuts will likely make it even more attractive, despite the fact that it's almost one year old now.

For those unfamiliar with the handset, the Nexus 4 sports a 4.7-inch IPS LCD display with a resolution of 1280 x 768 and a pixel density of 318 pixels per inch (ppi), topped with Gorilla Glass protection. Under the hood, the smartphone packs a quad-core Qualcomm Snapdragon S4 Pro processor clocked at 1.5GHz, paired with 2GB of RAM.

The Nexus 4 also includes an 8-megapixel rear camera with LED flash and a 1.3-megapixel front-facing shooter. In terms of connectivity, it supports 4G HSPA+, Wi-Fi, Bluetooth, GPS, NFC and built-in wireless charging. A 2,100 mAh battery powers the handset, allowing for up to 15 hours of talk time.

It remains unclear at this point whether the new discount for the Nexus 4 signals the imminent arrival of the next-generation Nexus smartphone. Judging by Google's previous launch schedules, however, the Nexus 5 should make its debut within the next few months.

Smartphone shoppers who are interested in the Nexus 4 can now get it for $100 less from the Google Play store. Find the 8GB version here and the larger-capacity, 16GB model at this link.