Thursday, March 30, 2006

Intel wants in on the bargain-basement laptop market

Back in December, Intel board chairman Craig Barrett dismissed MIT's new US$100 laptop as a "gadget." Today comes news that Intel has plans for a cheap laptop of its own, a diminuitive PC known as the "Edu-Wise."

Unfortunate name aside, we don't yet know much about the Edu-Wise apart from the fact of its existence. Oh, and that it will include "unique hardware and software features that meet the needs of students and teachers in developing countries," according to an Intel spokeswoman. The one other detail that we do know is the price, currently estimated at US$400, making it a superb value for students in the developing world.

Okay, so that last bit was tongue in cheek. Intel's machine is estimated at four times the cost of the One Laptop Per Child program that MIT is involved with, but Intel's laptop is designed to have more functionality. As the Google translation of the original (Portuguese) story puts it:

"It, however, said that the project of the Intel has all the functionalities of a common computer, being able to twirl an operational system complete, as the Windows, without the necessity of a simplified version."

The key question is, do students in countries such as Brazil need to "twirl an operational system complete," or would a stripped down version of Linux do just as well for them? At US$400, and without the handcrank that can power the MIT machine, Intel's laptop won't be showing up in rural Cambodian villages anytime soon. Still, it might be used in thriving markets like Brazil, India, and China. If Intel can hold the line on price, it may have a useful machine on its hands; if the project grows much more expensive, though, there will be few cost savings over a traditional laptop.

Take the UMPC (better known as Origami). Since its original announcement, the platform has swelled in price, and now costs from US$600 to US$1,000. Intel's project could very well suffer the same fate; Engadget, for instance, is guessing that it will come in at US$750. That seems pretty steep considering that current cheapo laptops cost less than this. Plus, the the new machine won't be out for a year. Given that processors are a major piece of a laptop's costs, Intel may be willing to provide older chip stock at blowout prices, which could potentially help the new laptop stay at US$400. Even at those prices, we think the machine may be too expensive to be widely deployed; anything higher could kill the project completely.



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