Samsung, together with Intel and Microsoft, launched the first UMPC, a very small portable, at last year's CeBit technology trade show as a alongside laptops and desktop computers.
"We targeted 100,000 units, but so far we didn't reach that target yet," Kyuho Uhm, Samsung's vice president of strategic marketing, told a news conference.
Samsung next year aims to sell 200,000 to 300,000 units of the new Q1 Ultra model, which will be available in May for around 1,200 euros ($1,580).
Samsung said the keyboard, battery life, wireless connectivity and size had all been improved on the second-generation model.
The device had also been given a higher quality screen as well as a GPS navigation chip, a mobile TV chip and two cameras.
H.S. Kim, chief of Samsung's computer business, told reporters at CeBit that although first-time users had no problem with the price of the UMPC, Samsung was thinking of introducing a low-cost version of the upgraded model.