Intel Pushing $300 Laptops to US Market

Intel tonight (Wednesday) is making a huge announcement in Shanghai about its Atom microprocessor, which will power a new generation of small, cheap Internet devices.

Some of the most-anticipated will be built around what Intel calls the reference design for the Classmate laptop. Intel designed and built the Classmate to sell into developing nations, essentially competing with Nicholas Negroponte's OLPC laptops. But Intel won't make or sell Classmates for mass market consumption because that would put Intel into direct competition with its customers.

Intel is working with three overseas computer makers -- none of them known names in the U.S. -- which will eventually sell Classmate-like laptops in the US., say Lila Ibrahim, who runs Intel's emerging market computer group. I talked with Ibrahim before the Shanghai unveiling, and she said the new models -- based on Intel's new Atom chip -- should cost in the $300 to $350 range.

The Atom is expected to be a huge push for Intel. The company is hoping it will drive everything like iPhone-type pocket devices to ultra-small laptops. Watch for a lot more news around this. I'm writing just after the initial announcement is out.

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