Now Google has released two smart phones the Nexus One and Nexus S. So there is no reason that Google will do nothing on tablet market.
According to Mobile-Review, a Russian tech website, Google would launch the Nexus tab as early as this summer or fall. The manufacturer of the Nexus tab is LG. And this Nexus tab will run on Android 3.0 Honeycomb.
The PC World speculates the new tab would come with a new brand of Honeycomb — Android 3.X — given that the other Nexus devices Google has released have had upgraded new Android versions pre-installed when they shipped.
In order to compete with Apple iPad 2, the Nexus tab will probably sport two cameras — one up front, one around back — and a faster dual-core processor than A5 chip, an SD card slot and USB port.