Google's tablet would run Android and HTC might make the hardware
Google CEO Eric Schmidt confirmed that Google is working on Android based tablet to few people at a party in Los Angeles, reported The New York Times. The source who didn't want to be named said that Google was even testing in "stealth mode" with select publishers to explore the delivery mechanism of books, magazines and other content. Looks like the search giant is all set to jump in to the tablet competition.
Back in January, HTC had confirmed that plans for a tablet existed but were shelved because the company wanted to focus on smartphones. Rumors had pointed that HTC tablet was being built in collaboration with Google and would run Android or Chrome OS. It's likely that HTC would be making the hardware for Google Android based tablet. HTC sure shelved the tablet plan but never said no to the possibility of making one in future.
Earlier this month, Apple's iPad tablet reached retail stores and is
being widely appreciated. Google would be looking forward to stand head
to head with Apple on the tablet devices front.
We already have Android OS based Notion Ink's Adam tablet and recently, details of HP Slate Tablet were also leaked out. The expectations from this Google tablet are bound to be high. We hope Google manages to fulfill them all and more!
I beleive that you misquoted Mr. Schmidt. He is reprted by numerous others as having said that they were "testing in stealth mode," not "testing a stealth mode."