Call it trickle-up technology. Microprocessor giant Intel confirmed Thursday that it plans to bring to the U.S. a second generation of the cheap laptop computers it originally designed for kids in poor countries.
The machines will be a fresh version of Intel's (nasdaq: INTC - news - people ) Classmate PC design, which competes with an offering by the high-profile One Laptop Per Child project, the XO Laptop, built around chips cranked out by Intel rival Advanced Micro Devices (nyse: AMD - news - people ).
But while the Classmate PC and XO Laptop have competed for the job of digitizing classrooms in poor nations around the world, Taiwan's Asustek Computer has proved that there's a market for cheap laptops in the U.S. and Europe (see "The Jonney Machine"). Asustek's Eee PC has been a hit in the U.S., thanks to a price tag that goes as low as $299 at some retailers, such as Amazon.com (nasdaq: AMZN - news - people ).
The success of the Eee PC has led Intel to make cheap, Web-friendly laptops it calls "netbooks" part of its plan to revive sales growth (see "Intel Goes Atomic"). Manufacturers in India and Indonesia have already announced plans to sell laptops based on the Classmate to consumers outside of the U.S. But as U.S. consumers go on recession watch, lower-cost PCs could help shore up flagging demand for new computers in developed economies.
Intel said laptops based on the updated Classmate design will cost between $250 and $350 to build, giving PC makers the ability to slot in a new class of laptops below their cheapest offerings, which typically start at $499.
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