The Google Nexus 7 2 could feature LTE connectivity.
Analyst and Pacific Crest partner Michael McConnell believes that Google will add LTE capabilities to the next generation model of the tablet.
Google is also planning to change the processor from Nvidia's Tegra 4 SoC to Qualcomm's Snapdragon S4 Pro. This will work better if the device ends up with LTE connectivity.
"We believe NVIDIA has lost the application processor socket to Qualcomm's Snapdragon APQ8064 chipset (S4 Pro) in the next-generation Google Nexus 7 tablet," wrote McConnell in a memo.
He claims to have received this information from supply chain sources and attributed the switch to competitive pricing and a "decision to single-source the application processor and 3G/4G modem to simplify logistics and create a fully pin-compatible platform interface."
He also predicted that the next-generation Nexus 7 will ship in the second quarter of 2013. This points to a possible Google I/O unveiling.
The tablet is also rumored to feature a full HD 1080p display and thinner bezel, according to a recent report.
DigiTimes has stated the Google and Asus will team up once again to refresh the wildly popular tablet and create a successor that could rival whatever Apple has up its sleeve for the next-generation iPad Mini.
The next-gen Google Nexus 7 will still be in the $200-$250 price range.
Other sources have stated that other specifications will also be changed around with the next model. Most industry analysts expect it to launch mid-2013, which means a Google I/O conference unveiling is a strong possibility.
Google I/O will take place from May 15-17 at The Moscone Center West in San Francisco, according to an announcement made by the company at the end of last year.
At 2012's conference, the company introduced its new Google Nexus 7 tablet, along with its Android 4.1, Jelly Bean OS.