David Chang, the chief financial officer at manufacturer Asus, told the Wall Street Journal that the Google-branded Nexus 7 is showing strong growth since its release in July.
However, the Nexus 7 is facing an increasingly competitive worldwide market for small-display tablets, including major rivals such as Amazon's Kindle Fire HD and the new iPad Mini from Apple.
On Tuesday (October 30), Asus announced an almost 200% growth in its tablet shipments in the third quarter. Both Asus and Google have declined to report exact sales figures for the Nexus 7, but it is thought that this increase is down to the budget slate.
Speaking about the Nexus 7 sales, Chang said: "At the beginning, it was, for instance, 500K units a month, then maybe 600, 700K. This latest month, it was close to one million."
Chang was speaking just a day after Google announced a new model of the Nexus 7 featuring 32GB of internal storage and with support for 3G connectivity, as well as WiFi.
The US search giant also announced a Nexus 10 large screen tablet and a new Nexus 4 smartphone.
Asus's reported sales figures for the Nexus 7 are promising, but the real test for the device will be when Apple's iPad Mini goes on sale this Friday (November 2).
According to research firm Strategy Analytics, there were 25 million tablets sold worldwide in the third quarter of this year, but 14m of those were Apple's iPad.
iPad sales are also expected to be significantly lifted in the final three months of the year following the launch of the new model.
Previous manufacturing estimates have suggested that Apple has ordered 10m units of the iPad Mini to cope with the expected consumer demand.