The current Nexus 7 costs $199 and only comes with a paltry 8GB of storage. You can upgrade to 16GB for $50 more, but a 32GB Nexus 7 for the same price would be much nicer. It seems that Google has read my mind as a 32GB Nexus 7 may be coming our way this holiday season.

Rock Tech Daily got a hold of a print ad from the UK-based Argos. It features a 32GB Nexus 7 for only £199. That’s the current price of the 16GB Nexus 7. In anticipation of the holidays, Google may be phasing out the 8GB Nexus 7 and replacing it with the 16GB. The 32GB can then take its place as the premium model.

What about US customers? Is there any word that we’ll also be seeing a 32GB Nexus 7? Android Police nabbed some screens from Staple’s online store that shows a 32GB Nexus 7 being offered for $249. They speculate that Google will replace the 16GB with the 32GB model while still offering the 8GB model for $199. That makes no absolutely no sense, and I still stand by my theory that the 8GB model will be discontinued.

Either way, it’s pretty much confirmed that Google will be launching a 32GB Nexus 7. It could be in response to the new Kindle Fire HD which only costs $249 for its 32GB version. Google can’t afford to lose to Amazon this holiday season and the Nexus 7 is more than capable of standing up to the Kindle Fire HD.

Both Amazon and Google could be thrown for a loop next week when Apple announces the iPad Mini. Many are speculating that Apple will charge $250 for an 8GB version. It would be more for less, but Apple fans have already proven that they’re willing to pay a premium for the experience afforded by iOS.

As for Google, they haven’t confirmed or denied the existence of the 32GB Nexus 7. They might be waiting to announce it after Apple reveals the iPad Mini. They could also be waiting for that moment to announce a $99 tablet that could undermine tablet sales for all of its competitors.