Packed inside its tiny little frame is a 1GHz ARM Cortex-A9 processor built by Samsung, along with an ARM Mali-400 GPU. It also packs HDMI-out, WiFi and a Micro USB port— and comes with Android or Ubuntu pre-loaded as the OS. It also handles MPEG-4 and H.264 video formats, so you could plug it into a TV and use it as a rudimentary media PC.
It's soon set to be rivalled by the Raspberyy Pi; a British effort to produce a similar product for around $35. To use the Pi, however, you'll need to be at home with a command line.