Hewlett-Packard is attempting to gain ground on smaller rivals that, until now, have dominated the netbook market, according to Reuters. The launch of the new, sleek-looking Mini 1000 is HP’s biggest attempt yet to force itself into the netbook market.

HP released its first netbook last Spring, but the new Mini 1000 uses Intel Corp’s Atom processor and more importantly for the average consumer, is significantly cheaper than its previous attempt at US$400. According to the report, analysts believe that the move to price it so low could signal the beginning of price wars in the netbook market. Hey, I don’t think any of us will be complaining about this.

HP’s Carlos Montalvo said that the new Mini 1000 is superior to the “second- and third-tier offerings” from competitors, which he daringly labelled as “over-optimized” for what you get, and which he believes lack HP’s consistency and overall quality.

The Mini 1000 will start at US$399 for a version running Microsoft Windows XP, with a fully loaded model available for US$549. Oh, and they haven’t forgotten Linux users, as a Linux version will be available for US$379, and finally a special edition designed by fashion designer Vivienne Tam will be on sale at US$699.