Taiwanese PC giant Acer is ready to rock the gadget world with a new $99 tablet set to compete in the low-cost market against Amazon and Barnes & Noble.

Acer is planning to launch the $99 Android tablet, Iconia B1, in early 2013, a source close to the project told the Wall Street Journal. The $99 tablet will feature a 7-inch display with a 1024 x 600 pixel resolution screen and 1.2GHz dual-core processor. Plans for the tablet reportedly began in the fall, after the company's competitors began offering aggressively priced options.

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Acer's $99 tablet would beat the competition in the low-cost tablet market.

In the U.S., Amazon's 7-inch Kindle Fire is priced at $159 for 8GB, while the Kindle Fire HD starts at $199. Barnes & Nobles' Nook Color HD, also 7 inches, comes in at $199 for 8GB. The iPad Mini, which measures 7.9 inches, starts at $329 for 16GB.

For those "looking for a minimal investment starter-tablet" Acer is a great option, writes Gizmodo's Brian Barrett, but there is one caveat.

Acer's $99 tablet is aimed at emerging markets, according to the Wall Street Journal. The device has been submitted to the U.S. Federal Communications Commission for clearance, but there is no confirmation on whether the tablet will be sold in the U.S. just yet.

Acer's low-cost tablet could also have competition in the near future.

Google is ready to go even cheaper than the $199 Nexus 7 with a tablet as low as $99, Digitimes reports. However, the $99 price might not be available at the get-go. The tablet may first be priced in the $129 and $149 range.

China's O-Film Tech has reportedly already started shipping products for the new Nexus 7 this month, according to Digitimes. Launch is allegedly slated for Q1 2013.

PHOTOS: Spec images of Acer's alleged new tablet first surfaced via GLBechmark.
99 tablet acer
99 tablet acer

Mock up of Acer's new tablet, courtesy of the Federal Communications Commission.
99 tablet acer