Back in July, Google CEO Eric Schmidt announced that the first netbooks running Google's Chrome operating system should appear by the end of the year. However, we weren't expecting them in October, and if Shanzai.com's sources are right, the first Chrome netbooks should launch within weeks.

Chinese netbook makers are reportedly developing affordable, sub-$200 netbooks powered by MIPS-based Loongson CPUs. Of course, you shouldn't expect these devices to ship worldwide, and they'll probably only be available in select Asian markets. In spite of that, this is rather big news, as it seems Google's is making headway on the new OS and it should appear in other designs quite soon.

It's long been rumoured that Acer and HP will be among the first major PC makers to adopt the new OS, but it's really no surprise that smaller companies will ship some devices ahead of them.

The introduction of Windows 7 in a few weeks, as well as Intel's launch of next gen Atom CPUs in late Q4, could create a bit more room for cheaper, simpler alternatives to increasingly costly Wintel netbooks. By alternatives, we mean dirt cheap smartbooks, powered by non-x86 chips and open operating systems, such as Chrome OS.

More here.