Google OS to drive cheap Intel-based laptops: CNET report

A number of inexpensive Intel-based laptops and tablets would come with Google's operating system, and others with Microsoft's, according to a CNET report, which cited sources and analysts.

Earlier this week Intel CEO Paul Otellini said touch devices could debut at prices as low as $200, which CNET had reported. The report says however, the cheapest devices may be based on a non-Windows OS citing sources and not necessarily Windows 8 as the original report had said.

The report cited a source familiar with Intel's plans as saying there were design wins for Android tablets at the $200 price point, adding Intel would be participating in that market this year.

Meanwhile, a report in Digitimes yesterday said Intel was promoting "Android convertible notebooks" and that Lenovo, Hewlett-Packard, Toshiba, Acer, and Asus would launch products over the coming months.

Also IDC's Bob O'Donnell told CNET yesterday that he had heard of the upcoming 7-inch Windows 8 tablets using Intel Atom processors priced as low as $299.

Further IHS iSuppli's Craig Stice did not think $200 to $300 Windows 8 devices were out of the question.

He said spending (three times as much) on a PC versus s a $200 tablet was a big barrier that he felt had been a factor in the struggles the PC market endured the last year.

Stice said in an e-mail, "If the PC industry can in fact get down to these $200 to $300 price points...they're on a much more even playing field and demand can certainly be positively impacted."

Meanwhile, Microsoft announced Thursday that its third-quarter profits were up 19 per cent against the same period last year. The rise which beats analysts' expectations came not only on lower-than-anticipated expenses but also strong server and Office sales.

The numbers on the face of it look like rebuttal from Microsoft to its critics; the company, already weighed down under Windows 8's cool reception, has taken much media flak in the last few weeks with several blows including Goldman Sachs downgrading Microsoft's stock.

The earnings report reveals that Microsoft continued to be in good health as a strong and diverse company, but there were some doubts, especially Windows 8 and the scope of Microsoft's influence are two of the open questions.

Microsoft's Windows division was up 23 per cent to $5.7 billion, slightly below analyst projections, and given the amount of criticism Windows 8 had absorbed, that might seem like a vindicating number.