PC makers in the United States and in Europe will sell a yet-to-be-unveiled, second-generation version of the Intel-designed Classmate PC for $250 to $350, said Lila Ibrahim, general manager of Intel's emerging market platform's group.While the machines are intended for children, analysts said the launch will add momentum to the low-cost computing movement -- and will likely mean this year's bargain-basement laptops will have more power than in previous years.

Intel has sold fewer than 100,000 of the Classmate PCs, but plans to ramp up production in 2008.