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Intel Targets Developing Countries with $199 Laptop

Natalie Sod
In a recent article by Reuters, Intel, the world's leading processor manufacturer, announced last Tuesday at Computex, a computer trade show in Taiwan, that it plans to produce a $199 laptop aimed at developing countries.

The $199 laptop, dubbed as Eee PC 701 (The 3 E's stands for, Easy to Learn, Easy to Work and Easy to Play) is in collaboration with Asustek, the World's largest computer motherboards manufacturer.

Although Intel already has a low-cost notebook out in the market, the Classmate, the Chip Giant said that the EEE would complement the former. Reuters reported that the Classmate PC is aimed at governments for use at schools in developing countries while the EEE PC will target consumers through conventional channels. The EEE PC will be under the Asustek Brand.

The EEE PC comes with a 7-inch screen, weighs around 890 grams, has a 0.3 megapixel camera, 512MB DDR2 RAM, and comes with either 4GB, 8GB, or 16GB of flash memory. Asustek is not disclosing what kind of processor is inside the laptop, but instead stated that it is an Intel Mobile Chip. The EEE PC will be priced at $199 and will be expected to hit the market around August or September.

Both the Classmate and the EEE PC will compete with OLPC's laptop. OLPC (One Laptop Per Child) is a non-profit organization headed by MIT Scientist, Nicholas Negroponte. According to The Independent, in 2005, Nicholas Negroponte, announced his vision to make affordable laptops for the children of the developing world. His organization produced a $100 laptop which will initially sell for $176. The organization is confident that it will reach its target price of $100 with sufficient orders and the price could fall to as low as $50 as new technology is developed.

OLPC's laptop, dubbed the XO, has a 7.5 inch LCD screen, Flash Storage, inbuilt wireless routers, 24 hour battery, AMD processor, and has a Linux-based operating system. OLPC's laptop has a plastic casing which is green and white in color and can be powered by hand cranks when electricity is not available.

In an interview with CBS, Negroponte accused Intel of trying to drive the organization out of business by aggressively marketing a rival laptop in countries OLPC is set to sign up. George Alfs, spokesman for Intel said, "We are going to need hundreds of millions of machines and that's going to take a whole industry to provide. There is plenty of room for numerous vendors." Negroponte estimates that there are more than a billion children who could get laptops.

In any case, according to The Independent, whoever wins the race for cheaper computers, it's the children of the developing world who will benefit the most.

SOURCES:

Simon Usborne, Laptop Wars: It Could Transform Life for Billions of Children, Redorbit.com. URL (http://www.redorbit.com/news/technology/957934/laptop_wars__it_could_transform_life_for_billions_of/index.html?source=r_technology)

Duncan Martell and Sheena Lee, Intel, Asustek plan low-cost laptop, Reuters. URL (http://news.yahoo.com/s/nm/20070605/tc_nm/intel_dc_4)

Published by Natalie Sod

I'm currently working as a government employee and at the same time studying Law.  View profile

6 Comments

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  • Dave6/12/2007

    No, the governments won't profit from a price war!! The OLPC is non-profit. The components manufacturer agreed to only take $3 profit. The software is free. The OLPC will cost what it costs, thus it can't 'battle'. Intel can take an initial hit and offer it at less than manufacturing cost and over time make up that profit as manufacturing costs decrease. This means low initial price for their laptop, but not low overall/longterm price. Game systems do this to break into markets. Remember, they're here for profit.

  • Sarah Holmes6/8/2007

    fascinating

  • Sona6/7/2007

    interesting article. Good to know this new thing. It would be nice if we really able to get a good laptop with $199.

  • Donna Porter6/7/2007

    What Luke said plus how about this program in the U.S. - lots of poor folks here.

  • Luke W Parker6/7/2007

    This makes me MAD! What in the heck does Intel think is noble and righteous about stepping in at the last second of OLPC's half-decade-long development process and drop this kind of bomb just because there is a new market?

    I've followed the XO's development for years since Popular Science first broke the story. Years later we all called it the "Google Laptop," because at one point Google Inc. said that they'd be contributing some software and a whole lotta money towards development for these things... Then they went IPO and changed their minds... Big setback for humanitarianism!

    Now it's finally launchtime and they're not even first to the market!!!

    Sure, I see that the kids are getting more laptops this way because their governments will profit from a price war on their hands. I even see that this cheap tech will trickle up to my own wallet one day...

    But what I don't see is Intel Corp acting like they have any honor or ethical reasoning. I'm going to only buy AMD from

  • Anny Sivilay6/7/2007

    Oh my gosh, that's crazy cheap.

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