The release of Google's cheapest Chromebook laptops yet — two versions priced at $149 each — is good news for students, and the cost will likely go even lower in the company's ongoing price war with Microsoft, analysts said.
"It really is excellent news for kids and for education," said Brad Reback of Stifel Nicolaus and Company in Atlanta. "You can now put computing power into the hands of many more kids. And (the price) will go lower. Google will continue to push pricing down to put pressure on Microsoft."
The newest versions of the Chromebook that Google announced yesterday are made by Hisense and Haier, PC manufacturers that have been working with Google to design lightweight laptops that run on the Chrome operating system.
Their arrival coincides with Microsoft's rollout of a lower-priced Surface tablet in an effort to reach students and budget-conscious families. Pre-orders for that device began yesterday, too. The cheaper version of the Surface Pro 3 sells for $499, compared with $799 to $1,949 for the higher-end models.
The Chromebooks don't have a hard drive and function as terminals dependent on an Internet connection to get most work done. The Chrome system is set up so users will automatically begin using Google's search engine and other services, such as Gmail and YouTube. Google also has used the Chromebooks as a prod to bring down the prices of all PCs.
"It has been good news for consumers, but not so good for vendors," said International Data Corp. analyst Jay Chou.
Herald wire services contributed to this report.
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