China-based smartphone vendor Huawei Device is developing Windows 10 2-in-1 hybrid notebooks for launch in 2016, with China-based BYD to undertake OEM production, according to Taiwan-based supply chain makers.

Huawei Device is the second China-based smartphone vendor stepping into notebooks, following Xiaomi Technology which has been cooperating with Taiwan-based ODM Inventec. The trend is due to a significant slowdown in smartphone sales growth in the China market, the sources said.

Xiaomi is likely to launch inexpensive consumer notebooks with high performance-price ratios, the same marketing strategy it has used for smartphones. Lenovo is expected to feel the most competitive pressure among notebook vendors, the sources said.

In contrast, Huawei Device may launch business-use 2-in-1 notebooks, the sources noted. As Huawei Device has scored points in marketing smartphones in the Middle East, Africa and Europe, its 2-in-1 notebooks are likely to put considerable competitive pressure on Hewlett-Packard, Dell, Asustek Computer and Acer, the sources indicated.