When 17-year-old Yuna Hua bought a new notebook computer for school, she chose a smaller, lighter and cheaper one to replace her bulky and expensive laptop.

Like many consumers, Hua reckons she doesn’t need a £750 laptop.

“It’s a lot less expensive and much easier to use and carry.’’ said Hua, a high school senior in the United States, who uses her notebook mostly for homework, surfing the internet and games.

For a quarter of the price of a regular notebook, PC makers such as Acer and Asustek Computer displayed simpler laptops – Netbooks, or low-cost PCs – at this year’s Computex trade fair in Taiwan, hoping to open up a new market and bolster the fortunes of PC makers.

Market leaders Hewlett-Packard and Dell are expected to follow suit with similar ultra-portable models, analysts said.

“You can easily double the market size of notebooks with this device.’’ said Acer President Gianfranco Lanci.

Analysts say low-cost computers, from 7-10 inches and weighing a kilo, could replace notebook PCs, but agree these new PCs have opened up the computer market to more first-time buyers.

“There is now a huge population out there in emerging markets that can afford these laptops. They may be cannibalising the current notebook market, but it’s also expanding the market very, very quickly.’’ said JP Morgan analyst Alvin Kwock.

Kwock added global shipments for low-cost models should hit 10 to 15 million units this year, with selling prices between $300-$500 (£150-£300).

But other analysts were not as optimistic.

“We think it’s unrealistic. The notion of targeting these products to emerging markets is false, since most people there won’t be able to afford it, and the people who can would rather buy a laptop.’’ said Bob O’Donnell, vice-president, clients and displays, at data company IDC.

Mr Lanci said he expected shipments of low-cost PCs to reach 40 to 45 million units in 2009, while chip giant Intel said it would not be surprised to see sales top 50 million in 2011.

Asustek Computer aims to sell five million of its Eee PCs this year, and 10 million in 2009, while Acer predicts sales of 15-20 million of its Aspire One laptops next year.

IDC said growth is strong in traditional notebooks, and only expects 3.5 million low-cost PCs to be shipped this year, rising to nine million in 2012.

“We’re being extremely conservative. I can see these products being attractive to students and women who want to be able to fit a PC in their handbag, but so far there’s just been industry over-hype.’’ said IDC’s O’Donnell.

Buyers at Computex expressed interest in the new PCs as they crowded around the displays of small pink, white and blue Netbooks.
“I’d definitely buy it as a second PC, since it’s easy to carry around and the screens are much bigger than a Blackberry or PDA – its easier to see.’’ said Florence Koh from Singapore.

Most of the new low-cost laptops, running on Linux or Windows XP, will be in stores this summer, and some analysts say they could resurrect a flagging PC market.

“They have set these products at a fair price range, and I can see many people finding it attractive.’’ said Jonathan Dee, General Manager of NetEssentials from the Philippines, as he strolled down the aisles of the computer show.

According to IDC, notebook shipments, including low-cost PCs, are expected to hit 145 million units this year, up 34.5 per cent from last year as consumer demand remained strong in Europe and Latin America despite a slowdown in the US market.

Growth for 2009 is seen slowing to 24.9 per cent, hitting 181.5 million units, said IDC