Acer to produce Android-powered netbook

Acer has announced that it will produce a netbook running Google's Android as its operating system.

The Aspire One will come with a 10 inch screen and will be available later in the year, most likely in the third quarter. Although Android was designed for mobile phones but netbook manufacturers like China's Guangzhou Skytone Transmission Technologies have already said it will use the operating system in netbooks.

The company refused to give any details on pricing, other than to say that the new netbook would be less expensive than models running Windows. Microsoft usually charges around $20 per licence for its netbook operating systems.

Acer said that it would still continue to offer netbooks powered by Windows. Indeed, the two companies have recently launched a marketing campaign to promote Windows on netbooks.

However, Android might not be the only thing worrying Redmond at the moment. Speaking at today's JavaOne conference Oracle chief Larry Ellison signalled that Oracle and Sun could be getting into the netbook market too.

“You’ll see us get very aggressive with Java, and developing Java applications for telephones and netbooks,” he said

"I don't see why some of those devices shouldn't come from Sun. There will be computers that are fundamentally based on Java."

Microsoft has angered some in the netbook manufacturing sector with new terms and conditions for the Windows 7 operating system. Under the licensing terms Microsoft will not allow the netbook version of its new operating system on devices with a screen size larger than ten inches.