Microsoft is launching a program to promote the use of its Windows OS in ultra low-cost PCs

Microsoft plans to offer PC makers steep discounts on Windows XP Home Edition to encourage them to use that OS instead of Linux on ultra low-cost PCs (ULPCs). To be eligible, however, the PC vendors that make ULPCs must limit screen sizes to 10.2 inches and hard drives to 80G bytes, and they cannot offer touch-screen PCs.

ULPCs are an emerging class of laptops that carry low price tags -- about £150 to £300. Early examples include the Asus Eee PC and One Laptop Per Child's XO machine.

Microsoft plans to charge PC makers US$26 (£13) for Windows XP Home Edition for ULPCs sold in emerging markets such as China and India, and $32(£16) for those sold in developed markets.

The programme makes an allowance for some chips, including Via Technologies' C7-M processors, which run between 1.0GHz and 1.6GHz, and Intel's upcoming Atom N270.

By offering Windows XP Home Edition at bargain prices, Microsoft hopes to secure its place in the ULPC market and reduce the use of Linux.

SOURCE-ComputerworldUK