HP is set to unveil a new mini-notebook today in a move to gain ground in the fastest-growing PC category, which until now has been dominated by its smaller rivals.
Netbooks -- ultraportable, inexpensive laptops designed for Web browsing and light tasks -- have taken the PC market by storm this year, with smaller computer firms such as Acer and Asustek Computer leading the way.
HP's sleek new Mini 1000, costing about $400 uses Intel Corp's Atom processor, and is also substantially less expensive than its previous offering, signalling that the price war in netbooks that some analysts have been predicting may have begun. HP will also offer a Mini 1000 that runs Linux for $379, as well as a special edition designed by fashion designer Vivienne Tam for $699.
Although still a fraction of the overall PC market, netbooks' popularity could lead to changes in the pecking order of PC makers and cut into margins and profitability as average selling prices come down.