Google is expected to launch its first tablet in a couple of months, and the dirt cheap 7-incher could spell trouble for the likes of Acer, Lenovo and Samsung.

The upcoming tablet, which has yet to be named, is said to target Amazon’s Kindle Fire, with a superior spec and the same $199 price tag. However, it could also put a lot of pressure on Lenovo and Samsung, as it will render their 7-inch offerings uncompetitive.

Lenovo’s IdeaPad A1 is already dirt cheap, but it is not even in the same class as the new Google tab, while Samsung’s new 7.7-inch Galaxy tablets are selling for a saucy €500.

Google’s move into the tablet space could force vendors to further slash their prices, ending up with meager margins. Google cannot take on Amazon without some amount of collateral damage, or friendly fire, and it looks like Christiane Amanpour will be reporting from Samsung’s back yard, flak jacket in tow.

More here.