Asus, which shook up the laptop market in 2007 with the introduction of the first inexpensive netbook, is planning to launch an electronic-book reader this year that would challenge the most popular e-readers on price.

Without offering much in the way of details, Asus President Jerry Shen told the Times of London that the company is planning to offer a budget and a premium version. Prices could start as low as £100, or about $165.

If the final product resembles a prototype developed by Asus research and development department, then it would include a wireless connection and dual screens separated by a hinged spine, so the e-reader could open up like a book. Asus could choose to include a Web browser, Webcam, microphone and other PC-like features, the newspaper reported Tuesday. The e-reader's screens would support colour, unlike the black-and-white displays used on e-readers today.

If the Asus device offers colour, then it won't use the same high-definition technology from E Ink that makes it possible to read on the Sony and Amazon devices even in sunlight. E Ink does not make colour displays.

Nevertheless, the high price of today's e-readers is a problem, if manufacturers hope to penetrate the mainstream market. Asus' device would be less than the $200 and $299 starting prices of Sony's and Amazon's e-readers, respectively.

However, even at the lower Asus price, the device might still be too expensive for most consumers. A recent study by Forrester Research found that e-book readers would have to be priced a $50 in order to reach the widest range of U.S. consumers. Such a price, however, would be less than the cost of components used in today's products.

Asus introduced the Eee PC netbook two years, launching a sub-$300 mini-laptop that became the fastest growing category of the PC market.