A new cheap PC???

Intel's low-cost Classmate PC to be sold in U.S.
By Steve Johnson
Mercury News


After all the buzz surrounding the low-cost Classmate PC laptop it designed for school kids in other countries, Intel is talking to computer manufacturers about offering an updated retail version in this country within months for less than $500.

"We're expecting to see Classmate PC in the U.S. by the end of this year," said Agnes Kwan, a spokeswoman with the Santa Clara chip-maker. "In the past 18 months, we've been getting a really good response from customers ... as well as from consumers asking about the product. We realized there was a big interest out there."

Although the second-generation laptop is expected to cost from $250 to $350 to make, it would be priced higher for retail sale after it's loaded with various software applications, Kwan said.

She noted that the computer's price and features are still being hashed out between Intel and the companies considering making it, which she declined to name. Whichever company eventually manufactures the new machine might choose to make several versions, each loaded with different combinations of applications and selling for different prices.

Those options will be brought up in a meeting Intel plans to have with some computer manufacturing executives soon. "We are going to talk about the next generation features of it in the next couple of weeks," Kwan said.

The first prototype for the Classmate PC, which contains Intel's Celeron processor, was unveiled in May 2006. It was designed to be
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an inexpensive machine for school children in parts of the world where computer technology remains relatively inaccessible.

The first-generation Classmate PC is being tested in schools in California, Texas and Oregon, as well as in a number of other countries.

The ones being tested in the U.S. are made by Taiwanese manufacturer Elitegroup Computer Systems. Others are made and sold by companies in Pakistan, Brazil, Nigeria, Mexico and Libya, Kwan said.

Intel has not disclosed how much revenue it has made from the first-generation computers and Kwan declined to speculate on what the company might earn from a retail version sold in the U.S.

David Wu, an analyst with Global Crown Capital, said parents in this country might buy the Classmate PC for their children. But he believes the product won't attract many adults.

"They look like a toy," he said, adding that the Classmate PC will likely have fewer features than some other computers already selling for less than $500.

Nicholas Negroponte and his One Laptop Per Child Foundation also have been pushing to provide low-cost computers in other countries. In January, he accused Intel executives of disparaging his product in order to promote the Classmate PC. Intel has denied the charge.

Contact Steve Johnson at sjohnson@mercurynews.com or (408) 920-5043.