a story over at Digitimes, Acer is set on beating Asus in the low-cost notebook market, although time will tell if the final product will be better; but it should at least be less expensive if Digitimes' sources are correct.
Both machines will feature an 8.9-inch LCD display and Intel's Atom processor, but apart from that, not too much is known about the hardware specifications or features. However, the Acer notebook should be selling for somewhere between US$350-400, while the next generation Eee PC will go for US$400-500.
This will, of course, also depend on the model, as we're sure that just as with the current Eee PC, there will be various models with different hardware specifications available.
It's quite interesting to look at the markups for these models, as Digitimes claims that the Acer low-cost notebook will be between US$250-300 in material costs, while the second generation Eee PC will be priced at about US$300-350. If these figures are indeed correct, it seems that Asus is having a much larger markup on its models.
One advantage Acer has is, of course, its buying power, as the company is much larger than Asus, and as such has better credit lines and bigger buying power. Acer also has a better distribution network than Asus, so the new low-cost notebook from Acer should be more widely available.