Acer and Asustek Computer have both recently finished digesting their netbook inventories and the two players will observe market demand before launching any new netbook models in the future, according to sources from notebook players.

With the two firms currently focusing on clearing out their entry-level notebooks and ultra-thin notebooks, their new netbook models are not expected to arrive until the middle of August.

Although Intel plans to launch the dual-core Atom N550 processor in the third quarter to improve netbook's performance, the CPU's US$11-22 price gap with the existing Atom N455/N475 is currently halting netbook brands from developing the related products. In addition, the appearance of the Atom N550 netbooks will also create conflict in terms of market position with Intel's Celeron-based notebooks since both CPUs will share a similar price level.

Although Intel reportedly plans to phase out Celeron processors and let Atom CPUs taking over the entry-level notebook segment, since Intel still has not yet officially confirmed the rumor, most of the notebook brands are taking a wait-and-observe attitude.

As for ultra-thin notebooks, Acer has already cut most of its models' prices in Taiwan below NT$20,000 (US$623), while some entry-level models even dropped below NT$15,000. Meanwhile, Asustek Computer and Toshiba have also reduced their ultra-thin notebook price below NT$20,000 to boost demand.