Dell wants a piece of the sub-$500 low-cost notebook market

The low-cost, sub-notebook market is just about to get even more crowded in the coming months. ASUS took a risk by entering the market late last year, but it appears that many major manufacturers are now looking to cash in on the low-cost gravy train.

Yesterday, DailyTech reported that HP is stepping up to the plate with its aluminum-clad, VIA-powered 2133 Mini-Note PC. The 8.9" notebook offers a wide variety of processor speeds ranging from 1.0GHz to 1.6GHz along with solid-state drive (SSD), 5400 RPM and 7200 RPM HDDs.

Today, we've learned that Dell will soon enter the fray with a Compal-manufactured 8.9" sub-notebook. Compal will have the capacity to ship 200,000 to 300,000 of the notebooks to Dell each month beginning in early June.

The launch of Dell's new sub-notebook will coincide with the availability of Intel's new Atom processors which are destined to take the mobile and consumer electronics markets by storm. The chips promise respectable performance with a TDP of just 4W on the Diamondville-based Atoms (8W TDP for dual-core versions) destined for low-cost PCs.

Michael Dell confirmed that his company is indeed working on the notebook when asked a question about HP's recently announced 2133 Mini-Note. "We will introduce a similar laptop," said Dell. "We do see opportunities for very interesting products that are smaller and lighter and address the more mobile users in a very cost-effective way."

Dell's entry will have some stiff competition by the time it arrives in June. The notebook will not only have to face the aforementioned HP notebook, but also the ASUS Eee PC 900, ECS G10IL, Everex CloudBook Max, Intel Classmate and a variety of other contenders.

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