By James Paladino/J.paladino@latinospost.com (staff@latinospost.com) | First Posted: Dec 20, 2012 06:15 PM EST

Consumers should expect a price drop on the Google Nexus 7 up to $99, say industry sources close to DigiTimes (via CNET).  

O-Film Tech, a display component manufacturer, suggests that "cost reduction measures" may adjust the device's retail cost to between $129 and $149 by the second quarter of 2013, with a $99 version landing later on. However, CNET warns that "this Digitimes report is coming from the supply chain, which can be very unpredictable. Orders for an unconfirmed component or new product can be canceled at any time."

The Nexus 7 competes directly with the iPad mini, which starts at $329, and the Kindle Fire HD, which you can nab for as low as $199. Even a $50 price reduction would provide Google's device with a huge competitive advantage. Critics and consumers both welcomed the Nexus 7 when it hit the market, with some big-name tech blogs appointing the device the crown for 7" tablets.

Google's device runs on Android 4.1 Jelly Bean and sports a NVIDIA Tegra 3 quad-core processor, 1GB RAM, Bluetooth, NFC, Wi-Fi, a 1280x800 display, and a 1.2-megapixel front-facing camera. Consumers can get their hands on the 16GB model for $199.99, the 32GB for $249.99, and a cellular 32GB for $299.99.

Check back with Latinos Post for regular updates on price drops.