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The Classmate Intels Risky Business

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by Kevin Maney
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Mar 20 2008 12:00am EDT

The Classmate: Intel's Risky Business

Following yesterday's news of Intel Classmate low-cost laptops landing in stores in the Philippines, Intel is saying that it will sell the $300 machines in the U.S. and Canada.

classmate_pc_open.jpg

This is a weird and seemingly dangerous move for Intel. By selling its own machine, Intel is basically undermining its customers -- PC makers such as Dell and H-P that buy Intel's chips. About 18 months ago, Intel exec John Davies, who runs the group that developed the Classmate, told me Intel would never sell Classmates for this very reason. Intel would only provide designs to PC makers who wanted to make Classmate-like PCs themselves. What changed? The Classmate even puts Intel into direct competition with companies such as Asus, which are making other low-cost laptops using Intel chips.

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