Google is to release an update to its Nexus 7 tablet in July, according to rumours. Powered by a Qualcomm chip, the new tablet will be similarly priced to the current affordable version.

A couple of sources told Reuters the tablet was inbound, which suggests it is more fact than rumour. Google's plan is to tackle the affordable tablet market in a big way with the new release. It hopes to sell up to 8 million Asus-built slates, stealing market share from the iPad mini and Kindle Fire.

Specification rumours include a higher-resolution screen, thinner design and a Qualcomm chip. The last detail is a big change, as traditionally Asus devices have used Nvidia's Tegra system. The Nexus 7 on sale now, for example, uses a Tegra 3 chip.

The decision to go with Qualcomm is allegedly connected to power consumption, which will have Nvidia fairly ticked off. Having its chip inside a Nexus device is crucial for growing market presence for a company like Nvidia.

There is no word yet on pricing, although we imagine it will match closely the £159 price of the original Nexus 7. The first

There's no word yet on pricing, although we imagine it will match closely the £159 price of the original Nexus 7. The first-gen tablet may also be discounted and remain on sale. We'll post more on the new Nexus the moment we have any info.