A third possible option would be for Google to approach Apple and Amazon's model and sell the old Nexus 7 at $150 while offering the new version for $200. Even if Google and Asus discontinue manufacturing the current Nexus 7, they could still sell its remaining stock at a reduced price.
Going that route makes more sense than selling the new tablet at $150. If the refresh maintains the $200 price point, Google could pack more competitive components into its 7-inch tablet and avoid angering its hardware partners.
Sign up for MIS Asia eNewsletters.