According to Digitimes sources, Lenovo is planning a 12-inch netbook. If so, Lenovo would be breaking Intel’s restriction that netbooks cannot use displays larger than 10-inches. As a result, Lenovo would lose its preferential pricing from Intel for the Atom N280 processor, increasing the price per processor by about US$10.
Known as the Lenovo S20, this netbook would come with the aforementioned Atom N280 processor and GN40 chipset and Windows XP. It would sell for about US$590.
It appears that Lenovo’s decision will allow it to avoid fierce competition in the 10-inch segment (where Acer and ASUS offer competing products). The 12-inch display would give the S20 a unique characteristic that Lenovo hopes would result in increased sales.