With everyone jumping into the netbook market to compete against the likes of the Asus Eee PC, Toshiba is taking a slightly different approach and working on a handheld UMPC instead. This is just the prototype that you see here, so there could be a lot of changes in store for the device before it hits retail outlets… if it ever makes it that far.

The unnamed chrome wonder from Toshiba currently boasts a 5.6-inch touchscreen display, Atom processor, 64GB SSD, and integrated GPS. Unlike the Eee PC and other similar subnotebooks, however, the Toshiba UMPC is going to be running a build of Windows Vista. You’ve got to wonder how well that Atom processor will be able to hold up. We’ve also got to wonder how much RAM this thing will be packing in order to provide a decent Vista experience.

Because you are relying on an on-screen virtual keyboard, the faux QWERTY takes up too much screen real estate. Perhaps it would be better if Toshiba opted for a keyboard similar to the Nokia N810. In any case, Toshiba is even saying that this product is too small for practical use. A little bigger and you’re into Eee territory though, aren’t you?