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Google will unveil a Nexus tablet model for US$99 later in the fourth quarter of 2012, according to Digitimes.

The rumored US$99 Nexus tablet is said to be equipped with an ARM-architecture, single-core processor 8950 developed by China-based WonderMedia Technologies, and a HUVA TN panel made by Taiwan-based HannStar Display. The tablet will be produced by Taiwan-based Quanta Computer.

If Google launches such a US$99 tablet, it would be startling.

Amazon just breaks even on tablets, according to CEO Jeff Bezos. Their cheapest media tablet is the 7″ Kindle Fire for $159. Google would have to make it back on advertising.

Gartner says mobile ads generated close to $3.3 billion worldwide in 2011 and projects they will top $20 billion annually by the end of 2015.

Global internet advertising expenditures will rise about 31.5% between 2011 and 2013, according to a July 2011 forecast from Zenith Optimedia. Internet ad spending is expected to total about $72.18 billion USD this year, and reach $94.97 billion in 2013.

Facebook knows who your friends are, Google knows what you’re interested in, and Amazon knows what you’ve bought, notes Wired. Baird Equity Research said they estimated Amazon would generate anywhere from $500 million to $1 billion in advertising revenue this year.

Location-based advertising, combined with a comprehensive, back-end database, might send CPMs through the roof. But a corresponding cheap or inexpensive data service might be required.

Among other things, it would likely hasten the decline of newspapers as print vehicles. Packaging a free tablet with a one year, $199 subscription, might be one way of attracting new subscribers.

According to ComScore, 1 in 10 tablet owners read digital magazines and/or newspapers every day. Tablets are now driving 7 percent of total page views of newspapers. Kindle Fire had the highest readership rate for digital magazines, at 43.9 percent, with newspapers at 39.2 percent. Nook had the greatest percentage of high-frequency newspaper readers, with 13.4 percent reading papers on a near-daily basis.

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