15 August, 2009

In China, Lanyu from Shenzhen has begun selling a 666 Yuan ($98) netbook that has even managed to license a Microsoft operating system (Windows CE).

As far as processing power, the eBook LY-EB01 packs a 266mHz ARM processor, 128MB of RAM and a 7″ screen. While it is unclear whether or not this model will migrate across the Pacific into American markets, one thing is for sure: the barriers to entry for personal computing are crumbling.

When netbooks were first released in the American market, there was no cheaper way to enjoy a mobile computing experience. At the time, it was possible to buy an eMachines, Compaq, or even Dell desktop to the $300-$400 price point, but the trends in computing have been leaning towards the mobile market for several years now.

When the OLPC campaign began selling its machines, they were too tacky to even be worth looking at on Amazon. That said, the eBook LY-EB01 is definitely not a looker, but it doesn’t resemble an alien or a circa 2000 Apple iBook G3 with ears.

Point being, there may actually be a market in the United States for such an underpriced, underspec-ed, microscopic machine. In fact, its almost cheap enough to be considered disposable, in the sense that if your toddler knocks it off the kitchen table, it wouldn’t be the end of the world. In that same vein, people who could not otherwise afford a computer can now be mobile and connected for less than $100. Or even further, elementary school students — who would assumingly have little sense of responsiblity — can use mobile machines with less risk to the school.

In my opinion, there will always be a market for ultra cheap computers — albeit a small one. Lanyu from Shenzhen doesn’t need to build factories in the US, but importing ~5000 machines a year through online sales could add up.

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