Efforts to reduce production costs touted as the main reason for the delay.
The launch date of its first co-branded Android device has been
pushed further from its original May deadline, because the company is
trying to tweak the device. Apparently, it is trying to change the
design to lower the cost from the current $250 (Rs 12,800).
The company is reportedly targeting a price tag between $150 (Rs 7700) and $200 (Rs 10,200) to compete against Amazon's similarly priced Kindle Fire. Apple is also planning to launch a smaller version of the iPad, sporting a 7.85" screen for a lower price, hence that is surely being taken into consideration by Google.
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