Google Chromebox challenges Apple Mac Mini

The devices both use the latest version of Chrome OS, the expanded version of Google's popular web browser that can power an entire new model of computer.

The software has proved popular with some educational establishments and some businesses because it is automatically upgraded to the latest version and reduces the need for IT departments to manage anti-virus systems. Despite this, the existing laptops, made by Samsung and Acer, have failed to capture the consumer imagination, and overall sales have been low.

Estimates suggest that fewer than 300,000 Chromebooks will be sold this year, accounting for less than 1 per cent of the laptop market. The two new devices include an improved, faster laptop, the Series 5, and a smaller box that will plug into existing monitors or televisions to provide access to the latest Chrome OS on a new platform.

Google's Linus Upson said the Chromebox had been developed by engineers who "wanted something to plug in to their TVs and play media through", but denied that it challenged Google's existing Google TV products. Many users have bought Mac Mini computers as media PCs.

Chrome OS currently relies heavily on a network connection, and until recently had neither a Windows-style desktop nor a file management system. Incremental upgrades have made offline access to Gmail possible, and offline access to documents is also launching soon. A beta version is already available.

Within the next two months, Google will also integrate Chrome OS with Google Drive, which it says will automatically back up all file whenever the machines can connect to the web. It has also recently added the ability to pin apps to the taskbar and to resize windows. A growing number of Chrome apps are available and Google says it is committed to reducing the limitations on what Chrome OS can do when it does not have access to the web.

The new Chromebook runs 2.5x faster than existing models, and the Chromebox runs 3.5x faster. Both models use an Intel Core processor and contain 16gb of flash memory. They will cost £379 and £279 respectively. Models from other manufacturers are also expected to be released soon.

Google said Chrome OS could now open more file types than ever before, including Microsoft Office documents and PDFs, and added that the bid to sell Chromebooks would include a new push to introduce so-called 'Chromezones' in Best Buy shops across America. London's flagship brand of PC World featured Google's first retail store.

The new models will be for sale online and in store. Prices for the new Chromebook, called the Samsung Series 5 550, are similar to those for existing models.

A range of analysts has suggested that Chrome could take off as a PC for those who are unfamiliar with computers, or people needing a cheap basic laptop, but stressed that the new, second generation models were still a new concept.