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.
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.
Rumors 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.
Apple's iPad had a 68 percent share of the market in January-March, according to data from IDC. Amazon had a little over 4 percent, lagging Samsung Electronics and Lenovo.
Microsoft last week introduced its own line of tablet computers, marking a major strategic shift for the software giant as it struggles to compete with Apple and re-invent its aging Windows franchise.