Report: Asus To Launch Chrome OS-Based Netbook Device In June

Asus is reportedly preparing to launch in June a new, relatively inexpensive, netbook PC running an Intel Atom processor on Google’s Chrome OS.

According to a report from Digitimes that cites an industry source, Asus will launch its first Chrome OS netbook with the objective of shipping six million units to end users by the end of this year. The device will reportedly include either Google's Android 3.0 platform or its Chrome OS and target enterprise customers as well as consumers principally interested in web-browsing.

Furthermore, the netbook will reportedly come with a 10-inch display -- slightly smaller than Apple’s 11-inch lightweight Macbook Air -- and target Apple’s touch-enabled iPad 2 by offering price-conscious users a bargain in the $200-250 price range. With the future of the netbook category in question as cheaper, touch-enabled tablet PCs from various vendors proliferate, retailers have begun selling single-core Asus netbooks for $280 and dual-core versions for $405, according to Digitimes. However, the sources reportedly said Asus’ $200-250 version will not directly compete with Apple’s iPad 2, which starts at $449, as it offers a much lower price-point, for a different category.

Asus nevertheless appears intent on leveraging its netbook technology in order to gain market share from Apple in the mobile market. Asus Chairman Jonney Shish in February said Asus will soon release a "secret weapon" to challenge Apple’s iPad product line, which currently holds 87 percent of the tablet market according to IDC. Shish said Asus' "secret weapon" is a product that's never been seen before but will be on display before it launches, although he declined to offer a specific timeline. Shish said Asus' new line of mobile devices have the edge over Apple's mobile products, as they feature Nvidia's ARM-based Tegra 2 mobile integrated graphics processor.

In order to add pricing as another selling point, the sources reportedly said Asus will have to adopt either Android or Chrome, both of which are less expensive -- and more specifically optimized for tablets -- than Microsoft’s Windows 7 OS.

Chrome OS could certainly use the design win in the low-end mobile market, where HP is pushing its WebOS platform based on IP acquired along with Palm, and Apple’s iOS continues to expand its application ecosystem. However, in Chrome’s favor is the fact that network service provider Verizon is offering cellular data Internet access on Chrome-based devices.

However, Google debuted Chrome OS two years ago, and despite the emergence in November of several systems running Chrome OS, built by manufacturer Inventec, and sporting the Google brand that would come to market by year’s end, Chrome has not seen the expected momentum -- nor the product launches. HP and Acer were also reportedly supposed to adopt the Chrome platform. But instead, manufacturers including HTC, Motorola, and Samsung at CES 2011 in January showed off mobile devices running Android, Google’s other platform.

Asus reportedly will offer the devices at a starting price under $200, before launching mid-market and high-end versions with additional designs and cloud-based services in the $499 range -- which may explain how Asus plans to challenge the iPad with a device that costs almost half as much.