HP Thursday launched its first notebook in China using AMD processors in an attempt to gain a bigger share in the low-cost, good-quality market, currently dominate by its arch-rival Dell.

The Pavilion Ze2200 products, using AMD's Sempron and 64-bit Turion processors, range from 5,999 yuan (US$740) to 8,499 yuan (US$1,048), the cheapest HP notebook products in China, with the previous lowest priced model 6,999 yuan (US$863).

"It is time for us to step up our efforts in the consumer notebook market," said Isaiah Cheung, general manager of HP China's mobile product unit.

He believed there are many students and parents in China who are price-sensitive but want products with good quality. Therefore the partnership with AMD is a way for consumers to realize their dreams.

It is estimated that as the summer vacation draws to a close in September, many parents will buy notebook computers as gifts for their children, making it a golden period for computer vendors.

The move was believed to be an attack on its major competitor Dell, who released a notebook model priced at 5,999 yuan earlier this year.

Cheung hoped that the Pavilion ze2200 products would eventually account for 40 per cent of all its consumer-targeted products in China, but he declined to say how many units HP aims to sell.

HP has already developed a distribution network in 177 cities, and has 650 stores to develop customers in medium-sized cities.

According to Cheung, the shipments of his company's notebook computers grew by 75 per cent year-on-year in the first half of 2005 in China, with the low-end notebooks selling at 6,999 yuan was a big factor in this growth.

Source: China Daily