June 27, 2007 12:12 PM PDT

Microsoft launches new low-cost PC effort in India

Microsoft has launched another low-cost PC effort in India, this time partnering with chipmaker Advanced Micro Devices in an effort to get more computers into the hands of students.

Beginning next month, Microsoft and its partners plan to start selling the IQ PC through computer retailers, bookshops and other stores in Bangalore and Pune, with plans to sell it throughout the country by November. The company expects the machines to start selling for 21,000 Indian rupees ($513), though it hopes to bring those prices down over time.

The computers are aimed at students from kindergarten to 12th grade, and the IQ PC will be built on AMD-developed hardware made by Zenith Computers. The PCs are set to include Microsoft's Windows Vista Basic, Works and Student 2007, as well as third-party software, including exam preparation, homework help and English-language learning programs. Microsoft also announced a test version of an online MSN IQ Education Channel.

"India faces a serious challenge in providing quality education, a critical factor in ensuring that children begin with a fair level of opportunity," Microsoft Senior Vice President Orlando Ayala said in a blog posting from India, where he kicked off the effort with the head of Microsoft India. "If applied correctly, technology holds great potential to meet this challenge."

In April, Microsoft set a goal of getting PCs into the hands of the next billion people by 2015, though the company's chairman, Bill Gates, has expressed hope that the goal can be reached significantly sooner. At the time, the company announced a program through which it will sell a bundle of Windows and Office for $3, but only for programs in which governments agree to pick up at least half the tab for PCs that will be owned by individuals.

The IQ PC comes on top of that program, as well as existing low-cost PC efforts in India, including Microsoft's Windows XP Starter Edition, a version of Windows that is sold on new PCs in emerging markets. In January, Microsoft also announced a Starter version of Windows Vista.

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India, AMD, Microsoft Corp., PC, Microsoft Windows Vista

Add a Comment (Log in or register) 15 comments
Set your target so high that you can't fail
by Razzl June 27, 2007 12:37 PM PDT
$513? Are they joking? Americans can get pc's with monitors, keyboards, and software for up to $150 less that that at any Walmart. I guess you can't fail if you start from such inflated assumptions that you can't fail to hit your target...
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Is that supposed to be cheap?
by raulmot June 27, 2007 12:44 PM PDT
I can go to Dell and get a laptop for less than that (I think $489 last I checked). A desktop for much less. Also was at best buy and office depot yesterday and saw laptops at each store for $399.

Don't do them any favors Microsoft. It would be cheaper to buy the laptops from best buy and ship them over to India.
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Well to do country...
by gkflyboy June 27, 2007 12:45 PM PDT
They must be doing well in India with all the new US Off-Shored jobs to consider a $500 computer "low cost"...
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Ha! Guess the gotta sell Vista to somebody...
by hounddoglgs June 27, 2007 1:00 PM PDT
What a joke! As previously noted, I see ads for low end PC's at local retailers every Sunday for around $350- sometimes complete with monitor and printer.

This is just another M$ scheme to push that crappy Vista.
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cost of PC is India..
by FutureGuy June 27, 2007 4:36 PM PDT
..cost of PC are in general are much higher in India because of cost customs. A pc that costs 500, with Windows and Office on it is pretty cheap. It's a different story that most in India tend to buy PCs without and OS and then use Pirated version of the OS and Office.
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Now don't you feel ripped off again!!!
by Ted Miller June 28, 2007 4:59 AM PDT
Here in the United States where the middle class is fast decaying giving way to a rich and poor only, we again see where someone other then us reaps the benifits of not being an Americian.
Reply to this comment
How about...
by count0 June 28, 2007 8:28 AM PDT
A low-cost PC for the US, for the out-of-work programmers?
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