Don't underestimate the power of cheap and the Wal-Mart mentality.

Wal-Mart partially exists because people are not willing to wait and instead buy semi-disposable furniture, electronics, housewares, etc. 2 or 3 times over rather than save their money and get better quality stuff.

I'd see a big market for people who buy these cheap things, get frustrated at its lack of capability and power, and then get a new one within the year.

that´s great for 3rd world countries...
if they sell the truck load of chips really cheap, then importing costs would help tremendously =)

I would argue about the power of cheap. If I buy a $1000 TV today and then in a few years another $1000. Will I not have been better off than someone who buys a $2500 tv today. Will not my 2nd TV be better than the $2500 Tv?
And as long as craiglist is around to sell TV #1 what the harm?
I know cheaper is why I wait on my first bluray player

@wanago: You're right. Electronics are a bit of a misnomer as they reduce in price relatively quickly. I guess my point is that there seems to be a big drop in quality for a small drop in price. The Wal-Mart mentality will cause people to buy those products even though (arguably), they could spend a bit more and get something that lasts longer and makes them happier over the long run. So rather than buy a surf-the-web-only notebook for $250 each year, they could spend $400 and get a basic laptop that can do light gaming, photos, etc. and last about 18 months. So in 3 years, you'll have either bought three cheapo laptops or two entry levels. So is the $50 worth doing more stuff with your gear? I'd argue yes. But I think the I-want-it-now world we live in says otherwise.

I have to agree with Wanago here.

@wanago: I also follow your philosophy. The trick is knowing when to get rid of old tech. At some point it drops in price really fast and no one wants it. I find you can keep a laptop for a few years and still get a descent price for it. Same with TV's. Buying a $4000 Sony 52"LCD instead of a $1500 Visio is retarded. I agree the Sony is better but you get it home and forget all that. Then you get another one in a year or two and sell the old one. You also always have a warranty.

Now I tend to disagree. I think the vast majority of home computer users only use a fraction of the computing power they have on their computer. How many of those people could get by checking email on a PC with specs from the year 2000? I would imagine a whole lot. With using such low demand I would doubt most users would even see a performance difference between the Atom processor and a 2.6 Ghz Core Duo. Their demands just do not reach high enough.

Being that we are the tech savvy we come at the computing problem from one perspective. That is max out to what you can afford to get the most flexibility and the longest life span. We generally have a broad range of uses for our computing needs. However if the average person never reaches that threshold, even by a small percentage, then why would they need to spend the money on power they will never use?

I am sure most of us here have experienced this thing with family or friends who are not "into" technology. They view their computer more as an appliance than a car. They don't want to do maintenance, they don't want to upgrade it. If the toaster breaks, just buy a new one. If the microwave breaks, just buy a new one. They generally purchase the computer with a very focused set of tasks in mind: email, browsing, word documents and maybe photos.

The real advantage in these cheap processors may be integrating them into gizmos other than "computers", desk top or otherwise.

Smart refrigerators, cooking tops, security systems, dedicated home and mobile entertaiment systems. The list is almost endless of devices that would benenfit from being "net-aware".

@M.A.S.: I think you're convincing me and would like to subscribe to your newsletter.

I still have the lagging concern of expectations. I think many will buy a "new" laptop assuming it will play games, run Aero, etc. After all, its NEW. They don't/won't acknowledge they paid next to nothing for it. So, if they can market this thing for what it is: email/web surfing/ light photo/ word processor, I'm on board. But methinks, they'll pull the Windows Vista Capable and disappoint many.

I assume that the form factor will come into this. You can get a perfectly capable word-processing and web-browsing machine for $200, but said machine is the size of a 1980s VCR. To get something the size (and noise level) of, say, a DVD player, you have to spend $500+.

That's "Internet Appliance" to you and me, Russ.

I get the feeling that this is just Intel trying to grab a piece of Via's action from the gPC and the like. Nothing particularly revolutionary.

Every few years another Internet appliance rolls out. None seem to survive, which tells me that the market isn't there. And yet some fast talker seems to manage to continue to extract the venture capital. Ahh, the power of a good presentation!

If I remember right it is low power C2D and can run OS X natively. Should be great for iPhone/iPod Touch platform instead of current ARM processor.

I saw "Nettop" and immediatly I thought of the RockmanEXE games.

@M.A.S.: Regarding your point, I installed a CPU monitoring utility on my MacBook Pro for shits the other day, and learned that it spends most of its time running its 2 cores at 1 GHz. It dynamically ramps to 1.5, or 1.8 GHz when loading a bunch of apps, and when it's really chugging, it'll snap to the native speed of 2.33 GHz for long stretches of time.

But my average CPU load over time is like 0.1%, and the cores are spending most of their lives underclocked at less than half their full capacity. If they couldn't ramp up at all, probably still 95% of the time I would see identical performance, with a couple seconds extra load time here and there.

So, for most regular use, a 2x 1GHz core2duo equivalent would do everything most people need these days. Atom is supposed to be around 1.2 GHz, and go dual core like a year after release. I would love to have an eeePC type mini browser computer based on one of these processors.

Wow, no one has mentioned yet the excitement generated by the Eee PC, which some would say is more than a "nettop". Whereas the Via chipset is truly underpowered for many common applications, Intel is offering a workable solution. The market for sub-$400 mobile computers is going to explode as the products get better and better.

I've been in the market for a cheap, thin, Pentium-M laptop that I can install Ubuntu on. If they make an Atom that has the same small/thin design but with the newest technologies (as compared to Pentium-M, so SSE3 and SSE4), then this is a big win. If it has hardware decoding of HD video then I am sold.

I guess I should wait but I need a laptop now, but a $300 laptop that'll run Ubuntu (or WinXP) is very, very sweet.

@M.A.S.: Exactly.. I have a Core 2 Quad system desktop setup at home, and I've maxed it out (8800GT and whatnot), but for school I just need something I can check my e-mail on, read the news, and maybe write a few papers. The Atom would be perfect for this. Damn, I wish there was more info on WHEN these laptops will be released and what they'll have.

Its like the EEE but cheaper, perfect for basic web browsing.

I have two PCs (both P4s) being put to use as a media center and one of those e-mailin/internetin/word processin deals over at my gfs house. I got both of them for free from friends who don't know that there's still life left in a PC that's almost a decade old. Both are running XP just fine. Now why would I want to buy a new low-end PC again? An old junker will do almost anything but play games.

Also, there's more to building a cheap PC than the CPU. These chips must be headed into mobile devices like cellphones and automotive media devices.

To make this post just a BIT longer...I just realized...the $250 laptop market could be there just for the sake of the fresh batteries. What good is a $200 used laptop when the battery only lasts 15 minutes and a replacement costs $100?

i think that a 50 to 100 dollar price drop is pretty considerable when taking into account the fact that you are talking about computers (both laptops and pcs) that are in the 400 dollar range

also i want to note about laptops lifespan...i think a large part is its design. where you put the various buttons and what buttons/features you choose to put on it matters alot. i got a 1200 dollar hp laptop a few months ago, and while its more powerful than the broken toshiba that it replaced, the toshiba was alot better in form factor. in retrospect, i should have spent the 400 it would have cost to get it fixed (despite the fact that it was only worth about 400)instead of buying a new laptop with more lights on it than a las vegas casino on opening night.