Amazon's Kindle Fire, which runs a version of Google's Android operating system, sells for $199. Through it users can access Amazon content including books, music and video.
"It's targeting Amazon. The Kindle is based on Google's platform but with its own service, so Google has to launch its own service, too," said the executive of the device.
Google has its own store for apps called Google Play, but does not have anything like Amazon's service.
Bloomberg earlier reported that Google would launch a tablet at its developer conference this week, taking direct aim at Apple Inc's iPad, citing two people familiar with the matter. One of the sources said the 7-inch tablet would showcase new features of Android.
The Asustek executive, who did not want to be named as the planned device has not yet been made public, declined to give details on its price, specifications or launch timetable. Rumours that the search engine giant planned to launch a tablet at its annual developer conference have circulated on tech blogs for weeks.
Google declined to comment.
Google has previously worked with hardware manufacturers HTC and Samsung to produce co-branded Android mobile phones under the Nexus brand. This would be its first such tablet device.
Asustek shares gained 2.6 percent in Taipei, outperforming a 0.6 percent gain on the benchmark stock index.
Copyright Thomson Reuters 2012
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