Google CEO Larry Page never came out and said that Google is working on a cheap Nexus tablet but today they all but confirmed it in their earnings report when he said this:
“There has been a lot of success on some lower priced tablets that run Android. Maybe not the full Google version of Android, but we definitely have a belief that there is going to be a lot of success at the lower end of the market as well, with lower priced products that will be very significant. And it’s definitely an area we think is important and are quite focused on.”
If that last sentence (“And it’s definitely an area we think is important and are quite focused on.” ) doesn’t confirm this then nothing will unless Larry Page directly announces it. We all already knew this was coming but it’s always nice to see somewhat of a confirmation.