Published: 30 June 1998 10:34 GMT
Acer is set to release the XC - a desktop computer for under $200. Aiming to reach a larger customer base, the Taiwan-based computer manufacturer is to drop Microsoft's Windows 95 and use Windows CE as the operating system.
The XC does not come with a monitor, but can be connected to a PC monitor or TV set. Jamie Snowdon, analyst at Input, believes that the device will not succeed in the business market. He said: "Acer will come up against Windows-based terminals and will have to face people in that space who run a version of Windows 95. The business community always seem to be concerned with products that are so cheap. The XC will need to prove itself before it is considered."
Snowdon added: "The problem that Acer will face is not being able to provide a complete package like the thin-client market can."
Acer aims to have the product in the shops by the end of 1998.
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