China-based smartphone vendor Xiaomi reportedly is planning to launch a notebook in 2016 and is currently developing the device jointly with its ODM partners Inventec and Foxconn Electronics (Hon Hai Precision Industry). So far, the notebook's mass production schedule has yet to be confirmed, according to sources from the upstream supply chain.

For the notebook business, Xiaomi is planning to use the same strategy as the one for smartphones and will release notebooks with high price/performance ratio, the sources noted.

The sources believe Xiaomi will likely release a 15-inch notebook as it is the mainstream size in China and will adopt Linux operating system. The notebook is estimated to be priced at CNY2,999 (US$471) and will heap pressure on competitors' simliar products priced between CNY4,000-6,000.

Lenovo, which has a 20-25% share in China's notebook market, is expected to be impacted the most.