PC maker Lenovo is planning to sell ultra-cheap computers for $199 in China’s vast rural market. Lenovo’s low cost PC would include keyboard, mouse and operation system, but users will have to plug-in their television set as a monitor. Lenovo is not the first to announce low cost computers; Dell has already announced their plans to sell machines ranging from $223-$515
Though Lenovo’s low cost computers ranging from $199 - $399 are just slightly cheaper than Dell’s offerings, they still have the potential to throw Dell out of the market, as the average yearly income of rural China is just $500 a year.
It’ll be interesting to see which operating system will be offered with this low cost PCs. Microsoft recently dropped prices for many versions of Windows Vista in China to fight piracy; however, it would do a great favor for Linux, if Lenovo or Dell chooses to offer Linux as an operating system. Linux performs better than Windows on low-end hardware. So I guess, it’ll be Linux for rural China. Not much is known about the hardware configuration of these low cost computers.
Source: Arstechnica

wrote, on August 6th, 2007
Low cost PCs only for china? When is it coming to India?
wrote, on August 7th, 2007
Its good hear to lenovo is selling a laptop for 199$ in rural china, when can we expect the same price in india