Get ready for the £50 Intel-based desktop PC

Last week, Intel revealed more about plans to release an ultra cheap, ultra small x86 platform called Network Aware Nettop.

The Nettop has been dubbed a Basic PC by Intel and its price would range from $100 to $299 (roughly £50 to £150) and would come with no fans, no CPU socket, an optimised PSU and cost optimised OS solutions (read Linux).

The kicker here is that Intel could suddenly find itself competing with some of its resellers and closest partners. Why?

Intel is ramping up flash production and could become a major solid state disk drive manufacturer fairly soon, which means that it could eventually provide a whitebox, turnkey solution for companies like Tesco or PC World to rebadge and sell.

Thereby increasing its own bottom line, alienating its partners (like so many times before) and cutting the middleman.

There are some teething problems - an analyst reports that failure rates for flash-based laptops reach epidemic proportions, but these will disappear when technology matures.

According to Cnet, Intel would use its Atom processors to cut down costs, the same as for the forthcoming next-generation Asus EEE range of computers.

In related news, Intel has also unveiled more details about its future graphics chip, called Larabee, which it hopes, will put more pressure on AMD and Nvidia.