Netbooks fueled by anything other than the all-conquering Intel Atom processor are certainly worth talking about, and the DigiTimes is reporting that China-based whitebox netbook makers are planning to launch a series of low cost netbooks using the ARM processor.

Local Chinese media reports say that a 7-inch device is expected to sell for less than 1000 RMB (US$146), which if it is any good, sounds like a great price. The netbooks are likely to hit the market in January or February next year and will compete with Intel and VIA-based netbooks.

A 10-inch model is set to follow the 7-inch one, and this one will be priced a little higher, and will adopt the Windows CE operating system, which will allow the user to do all the usual basic stuff – internet surfing and emailing for example – but won’t allow for 3D games or any other programs designed for Windows XP or Vista.

ARM-based netbooks do offer lower prices than others, but are known for lack of stability and may struggle to compete with the bigger name models already out there.