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Google boss, Eric Schmidt, who recently met with Apple boss, Steve Jobs, for a “quiet” chat, has told friends that Google is set to launch an iPad competitor.

According to sources, the device will run the Android operating system and will also run Adobe Flash applications. In Taiwan, maker of the Google Android phone, HTC, has not denied claims that it has been approached to scope the manufacturing of the device, which Google hopes will go on sale in the second half of 2010.

The device, which has been described as a logical product for Google because of their ambitions to be a global TV company, book seller and delivery system for applications, will also deliver subscription to various magazines and newspapers.

News Corporation is among the companies that have spoken to Google about the device, along with several book publishers.

The New York Times claims that Eric E. Schmidt, Chief Executive of Google, told friends at a recent party in Los Angeles about the new device, which would exclusively run the Android operating system. People with direct knowledge of the project – who did not want to be named because they said they were unauthorised to speak publicly about the device – said the company had been experimenting in “stealth mode” with a few publishers to explore delivery of books, magazines and other content on a tablet. He also said the new device will run Adobe Flash and games.

Apple dealt a major blow to Adobe last week when it refused to allow iPhone applications into its App Store that were built with Adobe software tools.

In other moves, Apple recently dropped the use of the name Google on their iPad, instead simply using the word “Search”.

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