Google has been developing an 8-inch tablet to avoid price competition in the 7-inch segment for launch at the end of April with initial shipments of two million units, according to Taiwan-based supply chain makers.

Google cooperated with Asustek Computer to develop 7-inch tablets which launched under a co-brand arrangement in June 2012 and July 2013.

However, sales performance for the second-generation Nexus 7 have been short of expectations mainly due to intense price competition in the 7-inch segment, with cumulative sales of fewer than three million units as of the end of 2013, the sources noted.