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AMD has the PC for developing nations
First stop: India...

By Sylvia Carr

Published: Friday 29 October 2004

Advanced Micro Devices has unveiled a stripped-down, low-cost computing device as part of a plan to move into developing markets.

The chip maker aims to provide 50 per cent of the world with internet and computing technologies by 2015 - what it calls its '50x15 strategy'.

To accomplish this, it will work with partners in foreign countries who will market and sell the device, called the Personal Internet Communicator (PIC), locally.

The PIC launches first in five Indian cities with partner Videsh Sanchar Nigam, a phone and internet service provider that's part of Tata Group.

The next stops are Mexico, where CRC will distribute the device with educational software, and the Caribbean, where Cable &Wireless will sell it.

Jon Collins, principal analyst at Quocirca, sees the availability of regional service providers as key to this sort of scheme. "Any such device needs a locally available support structure that is appropriate to the needs of its customers," he told silicon.com.

The PIC is a simple and easy-to-use Windows-based system that provides basic functions such as web browsing, email, word processing and image viewing. Other features AMD hopes will appeal to users in developing countries include its ability to work with inconsistent power voltage and a sealed design that protects it from the elements.

Although pricing will vary, AMD estimates it will cost $185 with keyboard, mouse and software and $249 with the addition of a monitor.

Companies that helped create the PIC include Solectron, Seagate, Samsung and Macromedia.

While praising the idea of bringing information technology to developing nations, Quocirca's Collins questioned the PIC's form factor. "I wonder whether the PC architecture is most appropriate - perhaps an enhanced set-top box would make more sense, as the target audience is more likely to have a TV screen than a computer monitor available," he said.

With global internet penetration of about 10 per cent and the world population estimated to reach 7.5 billion by 2015, AMD sees the potential for billions of new customers.

Hector Ruiz, chairman, president and CEO of AMD, said in a statement: "We see the power of computing not only to educate and unleash the creativity of people, but to create significant business and economic growth opportunities for companies and entrepreneurs who can help bring billions of people into the modern technology era."

The stripped-down internet device is not a new concept. Such a device, the Linux-based Simputer, is already available in India for prices starting at $250.

Earlier, failed efforts include Larry Ellison's New Internet Computer, which sold inexpensive, easy-to-use systems and closed its doors in 2003.