Even though HTC’s Flyer and Jetstream tablets weren’t so popular in the market, HTC is rumored to have tablet plans in its future.

The rise in popularity of inexpensive 7-inch tablets by Google and Asus have led HTC to rekindle its interest in tablet PCs.

HTC was one of the early Android tablet manufacturers, but its 7-inch Flyer and 10.1-inch Jetstream did not take off. HTC even rejected an offer from Google to co-develop and produce the Nexus tablet, as the company did not have any interest in targeting the $199 to $249 price range. HTC was also passed over as a production partner by Microsoft for Windows RT tablets.

But even so, HTC is reportedly planning to launch a new line of tablet PCs, possibly powered by Android. DigiTimes reports that HTC is reigniting its efforts in the tablet PC business, and is likely to come up with a model for release late 2012. Sources connected with component makers say HTC is in talks with Taiwan’s Pegatron Technology.

According to DigiTimes’ sources, the popularity of Asus’ profile arising from Nexus 7 sales has led HTC to reassess its tablet PC business. At this point, there may be a need for the company to adjust its pricing policy to better compete with the likes of Asus and Google, Amazon, Apple and even Microsoft. Also, HTC is still evaluating whether to produce a 7- or 10-inch model.