How will the release of sub-$500 laptops affect the PC landscape?

Last November, vendor Asus confirmed its highly anticipated Eee PC would hit Australian shores, selling for only $499.

The Eee PC is intended as “a lifestyle gadget designed for Internet access and learning”. Asus claimed the Eee PC is more compact than most PCs and is lightweight and rugged. The hard drive has been substituted for flash storage and connectivity is industry-standard. The operating system is based on Linux, however it also provides users the chance to opt for Windows Vista. The product name is based on the three Es: Easy to learn, Easy to work, Easy to play. However the Eee PC’s main selling point is its low $499 price, making laptops more affordable than ever before.

According to the vendor, the Eee PC will provide “users with a new mobile Internet experience like never before, by a mere point-and-click, it will change the way we work, live and play”.

Asus may have been first to market with such a cheap mobile computing device, but you can guarantee the vendor can expect to have some rivals breathing down its neck by the end of the year. For example, earlier this month Australian white-box maker Pioneer Computers released its DreamBook Light IL1. Also priced at $499, Pioneer’s offering is targeted at sectors such as government, education, corporate, dealers and mass retailers.

Pioneer made it clear it believes the DreamBook Light IL1 offering provides a faster processor, larger hard disk drive and better performance. The company referenced the Eee PC as its rival offering was launched. You can guarantee Pioneer will not be the last player to move into the potentially lucrative space.

The use of notebooks and PCs is more widespread than ever. Both young and old are using such devices, and the option of such a low price as $499 could drive more computing users than ever. We decided it was time to ask: “What effect will the release of sub-$500 portable computing devices such as Asus’ Eee PC have on the PC landscape?”