HP's Launch of Cheaper Netbooks Ignites Price War

HP's Launch of Cheaper Netbooks Ignites Price War

HP's recent launch of a cheaper line of netbooks is anticipated to boost competition over price and features. The company introduced Mini 1000 on Wednesdat, which has a starting price of $399. The new technology follows HP's 2133 Mini-Note PC which was launched in April.


HP is currently trailing behind Acer and Asustek in the netbook market. With its move to release low-cost devices, the company is expected fare well in the industry and will most likely start up a price war.



According to Bob O'Donnell, analyst for IDC, companies manufacturing mini-notebooks are seen to reduce prices. With HP's entry into the market, as well as other known vendors, prices are still expected to drop even more.



Netbooks have begun to take a market share away from laptops and sales are expected to increase up to 50 million by the year 2012.