Google is planning to launch a second-generation Nexus 7 tablet later this year, working with existing partner Asus, according to Reuters.

The search giant is aiming to ship “as many as eight million” of the devices in the second half of the year, it said. While sales of the original Nexus 7 have not been revealed, it has been suggested that around 4.6 million were sold to the end of 2012 – the comparable period.

The new Nexus 7 will be powered by a Qualcomm processor, instead of an Nvidia chip as used in the first version. The shift was said to have come after a comparative process, with Qualcomm winning due to its power performance.

It will also have a higher screen resolution and thinner bezel.

The big question will be pricing. With the introduction of the original Nexus 7, Google sparked new competition in the low-cost tablet market, rivalling Amazon’s Kindle Fire with its forked version of the Android platform.

Reuters said that Google’s plans in this regard are “fluid”. One option is that it will be priced at the same level as the original Nexus 7, and that existing stocks of the first-generation tablet will be discounted.

Alternatively, Google may take an even more aggressive pricing strategy, as its strategy does not depend on making a profit from hardware – instead it focuses on content sales through Google Play and advertising revenue.

Google may also choose to use the launch to introduce the new version of the Android platform – Key Lime Pie. It traditionally supports the launch of new versions of the OS with a “flagship” device, often using the Nexus brand.