Accepting a challenge from Wal-Mart to reduce packaging, HP is selling its latest notebook PC in a recycled laptop bag with 97 percent less packaging that typical laptops.

The HP Pavilion dv6929 Entertainment Notebook, in a bundle exclusive to Wal-Mart, comes packaged in a carrying bag with only a couple plastic bags for consumers to dispose of. The bag itself, save for the buckle, strap and zipper, is made out of 100 percent recycled fabric from Unifi.

Instead of packaging each laptop in its own box, HP is able to fit three bags in a box for shipping the product to stores. "From a logistics standpoint, the way they've been packaged reduces the space needed," said Scott Erickson, environmental program manager for HP's consumer PC business, "We can get 31 percent more products on each pallet."

The packaging that's left contains no foam and one piece of paperboard with product information, including HP's Eco Highlights label. The Pavilion dv6929 meets Energy Star requirements and is EPEAT Silver certified.

HP developed the packaging concept, Erickson said, after Wal-Mart challenged electronics suppliers to submit product ideas focused on design to attract customers, innovation that reduces environmental impact and packaging that encourages reduced materials, reuse and recycling.

"We decided to focus primarily on the packaging element as that is something we could innovate around and obviously something that is of big concern to Wal-Mart," Erickson said. HP's concept won the competition without any tweaks or changes requested from Wal-Mart, and the bundle is being released in Wal-Mart and Sam's Club stores across the country this month.