ozmanjusri's Journal: Low cost Linux laptops leading the charge.

The world's third largest computer seller said today that it will offer a new, low-cost laptop similar to Asus' Eee PC. The American manufacturer Everex is already producing the Cloudbook Linux compact notebook for retail giant Walmart.

Acer had previously said it would not compete in this field, but changed its mind following Asus' success.

"I believe it's necessary for the company and they cannot let go of such an opportunity since it's where the industry trend is going," said Daiwa Institute of Research analyst Calvin Huang.

The combination of compact hardware matched to lightweight but functional Linux software seems to be hitting a sweet spot with customers. Asus says it intends to sell five million Eee PCs this year, while Acer has ordered an initial one million compact notebooks from a contract manufacturer.

While has a very different focus from these mini-notebooks, it looks like Nicholas Negroponte's development of the XO has opened up an entire new market, one which will make his dream of a sub $200 laptop even more ubiquitous than he intended.