The new drives are the first IBM notebook hard drives designed with audio-visual capabilities in mind, the company said.

CNN: IBM introduces 32G-byte hard drive for notebooks

But Sanchez said IBM expects notebook prices to stabilize over the next year, as the excess supply in the market, which partly drove price cuts this year, begins to evaporate.

CNN: Notebook prices to flatten, IBM says

The microdrive can be used for storage for digital cameras, handheld computers, personal digital assistants and notebook computers, IBM said.

CNN: IBM claims world's tiniest disk drive

With the increasing emphasis on tapping into the low end of the notebook market, IBM also wants to avoid putting out a product that is not ready for prime time, Sanchez said.

CNN: Notebook prices to flatten, IBM says

In addition, IBM announced that in May it will start supplying in volume two new 20G-byte and 30G-byte Travelstar hard drives to major notebook vendors, including Compaq, Dell, Gateway and the IBM Personal Systems Group.

CNN: IBM introduces 32G-byte hard drive for notebooks

After deciding in the early 1990s to concentrate on laptop and notebook computers, it is now far ahead of rivals like Compaq and IBM with a lock on 20% of the world market.

CNN: ASIANOW - Asiaweek

Other notebook vendors to join the chorus Monday included market leader Toshiba, as well as Fujitsu and IBM.

CNN: High-powered portables arrive in force