The world's largest contract laptop PC maker is branching out into ultramobile PCs (UMPCs), using a reference design from Intel and software from Yahoo (i told you!).

Intel executives showed off the UMPC made by Quanta Computer at the Fall Intel Developer Forum in Taipei on Monday. The new device is a sign Intel and other backers of the UMPC design are gaining further support from hardware makers globally, which will increase the variety of devices available as well as their functions. More UMPC contenders should also help drive down prices through market competition.