Google has delayed their new Nexus tablet which is believed to be in development with Taiwanese company ASUS.There is also speculation that Apple is also looking to launch a 7″ tablet despite Steve Jobs claiming “never”.Insiders have confirmed the new Android 4.0 tablet will not be launched until at least July, due in part to the Company looking to deliver a sub $200 tablet similar in pricing to the Amazon Kindle Fire.

The Verge reports that Google is currently working with ASUS on a co-branded 7-inch, Wi-Fi-only tablet, which will sport the new Nvidia Tegra 3 quad-core processor.

The Kindle Fire has enjoyed phenomenal success since launching for $199 in November, while reports yesterday claimed that Apple is also working on a 7.85-inch iPad tablet.

The new device will come loaded with Android’s Ice Cream Sandwich rather than the forthcoming Android 5.0 Jelly Bean OS, says the article.

The Verge’s source says bringing Jelly Bean into the mix will just cause further delays, so it’s likely that the newer version of the OS will be tagged-on at a later time.

It seems plausible that Google will look to an inexpensive model to boost the profile of Android slates, considering the lack of success tablets have had competing with the iPad at the same price structure.