By using small components designed for mobile devices, Intel can build a low-cost computer that would retail for as low as $100.
When it comes to semiconductor, surface area for chips and cost of materials are at the core of the hardware cost reduction. Usually mobile processors, like those found in laptops are smaller, but cost more, because we want them to perform like their bigger desktop counterpart. But if you accept having slower performance (like 50% of a Celeron CPU), you can get a very affordable minuscule chip. Use this principle onto the whole system (chipset, storage…) and you get an uber-affordable computer.
Now it is great for people with basic computing needs, but that has to scare the pants out of PC manufacturers. This is not some “developing countries”computing, folks. They will sell like hotcakes in developed countries too.
Related: Why Are PC Manufacturers so Afraid of the Asus Eee?
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