Which markets will low-cost PCs predominantly serve in Oz?

Everyone is talking about low-cost PCs and Dell has become the latest vendor giant to throw its hat into the circle after confirming plans for a cut-price mini-notebook.

The PC manufacturer made the official announcement after chief executive Michael Dell was seen brandishing a mini-laptop at the recent All Things Digital conference in Carlsbad, California.

Details are few and far between, but a Dell blog revealed that the company has “positioned it as the perfect device for the next billion Internet users”. Images of the pint-sized notebook appear to indicate that it will come in a choice of two colours: black or red. However, the company has made no formal announcement on specifications or pricing.

IDC forecasts worldwide shipments of the ultra low-cost notebook PC will grow from less than 500,000 units in 2007 to more than nine million in 2012. But with low average selling prices, worldwide revenues will be less than US$3 billion in 2012. As a percentage of the total consumer PC market, these devices will remain under five percent throughout the forecast period. However, ultra low-cost notebooks could eventually capture more than one third of the education market by 2012.

IDC’s definition of an ultra low-cost notebook PC is: a sub-US$500 clamshell form factor mobile PC with a screen measuring from seven to 10 inches diagonally, running a full operating system capable of supporting third-party applications, and possessing a keyboard and wireless broadband connectivity.

HP, Asus, MSI and Pioneer Computers Australia have already flagged their intent in the space. Asus believes it is on target to sell almost two million Eee PCs in the first six months of this year at US$299 or US$549, depending on specs. The growing momentum behind this new genre of notebooks has been driven in part by the availability of low-cost chips from Intel and Via.

Pioneer even managed to release a $349 offering, DreamBook Light IL2, which weighs only 800 grams. The ridiculously priced laptop followed up on the Pioneer DreamBook Light IL1.

However, hype and interest aside, we ask our experts which sectors of the mature Australian market will be looking to splash their cash on low-cost PCs?