Google tipped to launch budget Nexus phone

Could cost as little as $100

A new report suggests that Google is currently working on a low-range Nexus phone that would carry a budget price tag.

According to Chinese website, Google's next Nexus handset could cost as low as $100 (about £59).

Google is reportedly working with Taiwanese chip manufacturer MediaTek on a new Nexus device that will be aimed at the budget end of the smartphone market.

The phone would likely fall in the lower mid-range spectrum, and likely wouldn't replace the Nexus 5.

The site claims that the "overall specifications should not be too high" and while the price is just a guess, every indication from its sources hint that it would be an entry-level phone.

The cheap price for the rumoured budget Nexus could be MediaTek's low priced processors.

On a cheaper phone the processor could account for 20 per cent of the whole price for the parts, so sourcing from MediaTek could allow Google to set the price drastically low.

HTC partnered with MediaTek to offer the entry-level Desire 310, and the chip maker is China's leader in smartphone silicon.

The budget Nexus may never even reach the UK or US and be destined for emerging markets instead.