One of the knocks against netbooks was poor graphics capabilities, but Lenovo has addressed that concern with its newly announced netbook. The IdeaPad S12 netbook has a 12-inch screen that can play full high-resolution movies, thanks to a powerful chip with an Nvidia graphics processor under the hood. The processor is part of an Nvidia chip package called the Ion platform, which couples the GeForce 9400 graphics core with Intel's Atom netbook processor.

"For the first time ... users will be able to enjoy brilliant 1080p high-definition video with silky smooth playback," a Lenovo representative said. Strangely enough, Lenovo doesn't offer an optical drive, such as Blu-ray, with the netbook. But users can buy an external Blu-ray drive or download high-definition content from the Internet.

Before bringing a system with Ion graphics to market, Nvidia will first introduce an S12 netbook with Intel's integrated graphics. Those systems will become available in June, with prices starting at US$449. Models with Ion will become available a few months later, and pricing for them wasn't immediately available.

Strong graphics aside, Lenovo has added sundries such as a larger keyboard that make the netbook easier to use. Lenovo claims a six-hour battery life, though it was unclear whether this was for laptops with or without Ion graphics.