Novo7 TabletThe first tablet running the brand new Android 4.0, also known as Ice Cream Sandwich, is priced at only $99 USD. The tablet is called Novo7 and is made by Ainol Electron from Hong Kong.

At such a low price we might expect modest specs, but this tablet actually delivers respectably. It features a 7-inch capacitive touch screen, a front facing camera and a 2 megapixel back camera, both WiFi and 3G connectivity, USB 2.0, HDMI 1.3, and a microSD slot.

Its internal architecture is a bit of a novelty on the tablet market. It runs on a MIPS XBurst CPU running at 1Ghz, which apparently excels at power efficiency, and is coupled with a Vivante GC860 GPU running at 444 Mhz. As such it is capable of 1080p HD video playback/encoding/decoding, and supports battery life of 8 hours of constant video playback, 7 hours of active web browsing, and 300 hours on standby.

Despite being a lesser known player it’s entry into the market seems quite serious with Google certification and support on its side. Senior vice president of mobile at Google Andy Rubin said that he is “thrilled to see the entrance of MIPS-Based Android 4.0 tablets into the market”. MIPS has so far been dominating embedded devices, but apparently sees an opportunity to compete against ARM in the tablet space.

Overall Novo7 appears to be a pretty good deal for just $99, but in tradition of getting what you pay for there ought to be some compromises. First off, it is doubtful that a 1 Ghz MIPS Xburst CPU can match up to the ARM-based dual-core and quad-core CPUs in tablets that typically make the headlines. MIPS claims the best price-performance ratio, but they’re rather light on details.

A mobile games maker Gameloft is onboard, however, and Ainovo web site says Novo7 can play Gameloft genuine games including the pre-installed Spider Man game. So it should be reasonable to expect those games to run well.

Secondly, compatibility of some Android apps may be an issue as they are typically compiled with ARM CPUs in mind. The best guarantee are pre-installed apps and those specifically claimed to support the MIPS architecture, but for everything else your mileage may vary.

If MIPS invasion of the Android tablets space proves successful by any measure it might further strain the Android fragmentation issue due to the need to support a yet another architecture. Note that Intel too wants in with its Atom platform. Google will have to find a clever way to address this issue in a way that makes Android development efficient while offering Android users a consistent experience and maximum compatibility across all devices. This will be a difficult feat to pull.

All this said, Novo7 probably represents the best option yet in its price category. As a full blown Android 4.0 tablet at such an attractive price it makes it easier for those who are unsure about shelling out for a tablet to dip their toes and give it a try. It should certainly be good for watching videos, surfing the web or playing a game or two on your couch or on the go, at the very least.

It will be available in North America from OMG Electronics and Leader International. Meanwhile you can try buying it from the Ainovo site when it gets back in stock.