Google is likely to announce a partnership with HTC to launch the third-generation Nexus, an 8.9-inch tablet, under Google/HTC dual-brand sale at Google I/O 2014, according to Taiwan-based supply chain makers.

The 8.9-inch tablet is equipped with a Nvidia Tegra K1 processor, 2048 by 1440 touch screen and supports 4G LTE. Shipments will begin in July 2014 and retail pricing will be between US$399 and US$599, the sources said. Shipments in 2014 are estimated at 1.5 million units, the sources noted.

Google cooperated with Asustek Computer to launch the first- and second-generation Nexus 7 7-inch tablets for dual-brand sale, helping Asustek gain a foothold in the global Android tablet market.

Tablet markets in North America and Europe have reached saturation, while markets in China, Southeast Asia and Latin America are growing but are dominated by inexpensive models priced below US$199. Large-screen smartphones have been in competition with 7- to 10-inch tablets, and 8.9-inch tablet are struggling, the sources said. Therefore, HTC unlikely to substantially benefit from the partnership with Google, the sources analyzed.