According to Chinese newspaper, Commercial Times, Acer is planning to launch a low-cost, ultra portable notebook to compete with Asustek's popular Eee PC.

The new machine should appear in late Q1 or early Q2 and it should feature an 8" or 9" display, slightly larger than the 7" Eee. The tiny 7" screen has always been one of the main drawbacks of the Eee. There were persistent rumors that Asus would eventually launch an 8G version with a spacious 10" screen, but the 10" Eee failed to materialize. The larger screen size should help Acer's chances on the market, if it manages to keep the prices down.

The newspaper claims that Acer will outsource production to Wistron and AU Optronics.

More here.