HTC is entering ultra mobile notebook market with a Windows Vista 7 inch portable computer dubbed HTC Shift.

Update 08/13/07:
First HTC Shift Review

The HTC Shift features a 7 inch touch screen and a full QWERTY slide-out keyboard. Other features of the HTC Shift include a 30GB HDD, tri-band HSDPA and Wi-Fi connectivity, USB port, VGA port and SD Card slot.

HTC will show the Shift at the CTIA. HTC showed the Shift to the guys at Laptop Magazine. There take: "We think it looks like a more compelling option than the split-keyboard Samsung Q1 Ultra launched at CeBit, especially for highly mobile professionals."
More details on the Laptop Mag site. HTC has now also a product page up for the Shift on their site.

HTC could be a huge competitor for the UMPC crowd. They are already dominating the Windows smartphone business. See also this report on the HTC Shift and UMPCs.