Google CEO Larry Page believes inexpensive Android tablets are the new black.

Speaking in the company’s latest earnings call, Page pointed out that cheap Android tablets are doing quite well, but he stopped short of confirming or denying plans to launch a Nexus tablet.

“There’s been a lot of success on some lower-priced tablets that run Android, maybe not the full Google version of Android, but we definitely believe that there is going to be a lot of success at the lower end of the market. As well, with lower-priced products that will be very significant. It’s definitely an area we think is quite important and that we’re quite focused on,” said Page.

Page was obviously alluding to the Kindle Fire and, of course, he went on to mention “strong competition” on the market, i.e. Apple. Google is said to be preparing its own low-cost 7-inch tablet that should go head to head with the Kindle Fire. However, if rumours of a 7.85-inch iPad prove right, the company will also have to compete with Cupertino in the latter part of the year.