Acer will launch a 7-inch Android tablet for sale at only US$99 in the first quarter of 2013, according to Taiwan-based supply chain makers.

The tablet will be equipped with a processor developed by MediaTek to cut costs, the sources said.

Asustek Computer has also developed a 7-inch tablet for sale at US$99 but has decided not to launch it due to its of cooperation with Google on the Nexus 7, the sources claimed.