Working with Taiwan-based Quanta Computer and not Asus, Google is building the cheaper Nexus 7 variant with just a single-core processor reports Digitimes. According to the report, the tablet is based on ARM-architecture and is a single-core processor 8950 developed by China-based WonderMedia Technologies. Google’s move will not only hinder sales of other tablets but, will also prove to be a challenge for local Chinese white-box tablet vendors.

The report comes by in parallel to that of the Next Web which informs that UK based retailer Argos has released a Christmas Gift Guide showcasing a 32GB Nexus 7 priced at around $323. The news about Argos’ guide comes just a day after the 32GB variant of the Nexus 7 was spotted on Staples Advantage with a price tag of $248.37.

Earlier there were reports with screenshots of inventory indicating Google was all set to ship its 32GB Nexus 7 variant from October 24. With Apple’s iPad Mini event slated for October 23, Google may very well be planning a tablet or two of its own to give the new iPad family member a tough competition.