Microsoft Partner Network reports that "After October 22, 2010, original equipment manufacturer system builders will no longer be able to manufacture netbook PCs that run Windows XP operating system. Take this into account when making manufacturing and assortment decisions. And inform customers that many OEMs are already producing netbook PCs that run Windows 7."
Of course, Microsoft will continue to allow OEMs to sell XP, but there's a catch "volume licensing agreements allow OEMs to provide their customers with XP on new computers. However, this's only possible when new Windows 7 PCs are purchased, featuring the SKUs which, in concert with volume licensing agreement provide downgrade rights," stated Microsoft in the changes to Windows lifecycle policy and sales availability, earlier this month.