Think back to when the XO was just a glimmer in the OLPC Project’s eye [1] and you’ll remember that Intel was once prepping a competing device with its partners, called the Classmate PC [2]. While we haven’t heard much on the Classmate PC front lately, it does seem like Intel’s research has yielded some results: Intel and PC manufacturer Asus have announced the horribly-named “Eee PC,” a 7-inch laptop/UMPC hybrid that’s designed for web browsing and other simple applications. The Eee comes equipped with 512MB of RAM, a 4/8/16GB flash drive for storage and a built-in wireless card, webcam and microphone. What’s more, it’s capable of running either Linux or Windows XP, unlike the Linux-only XO. So what’s it going to cost? Rumor has it that the tiny device will be available in August for $199–half the price of the non-laptop Palm Foleo [3] and only about 20 bucks more than the OLPC. Unlike the OLPC, however, the Eee PC isn’t a philanthropic device; Asus will be selling it to regular folks like you and me through the usual retail channels. Which is not to say that developing nations and inner-city schools couldn’t make good use of it. “Given the fact that Eee can run Linux or Windows XP and it can boot off NAND flash memory in a mere 15 seconds, the Eee slaughters the OLPC with ease,” the always outspoken George Ou writes.

For more on the Eee PC:
– see this PC Magazine article [4]
– and this blog entry [5] from ZDnet‘s George Ou