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San Francisco - Google is releasing its cheapest Chromebook laptops yet, two versions priced at $149 aimed at undercutting Microsoft's Windows franchise and gaining ground in even more classrooms.
Various PC manufacturers have been working with Google to design lightweight laptops running on the Chrome operating system since 2011. The newest versions are made by Hisense and Haier.
Hisense's Chromebook can be ordered beginning on Tuesday at Walmart.com and Haier's version can be bought at Amazon.com.
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 on Tuesday, too.
As the prices for tablets and smartphones have been declining, it has forced on PC makers to lower their prices, said International Data Corporation analyst Jay Chou. The success of the Chromebook line is intensifying the PC pricing pressure.
"It has been good news for consumers, but not so good for vendors," Chou said.
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The cheaper version of the Surface Pro 3 sells for $499, compared with $799 to $1 949 for the higher-end models. The discounted version has a slightly smaller screen - 27.4cm (10.8 inches) rather than 30cm - a slower processor, and less flexible kickstand - just three angles rather than unlimited positions.
The Chromebook has served a dual purpose for Google. Like the company's Android software for mobile devices, 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 has used the Chromebooks as a prod to bring down the prices of all PCs, something the company wanted to do because it has more opportunities to show the digital ads that bring in most of its revenue when more people can afford to buy an internet-connected device.
"We cannot be happier that Microsoft is helping drive down the prices of PCs," said Caesar Sengupta, Google's vice president of product management for Chromebooks. "If Microsoft is reacting to [Chromebook's low prices], that's fantastic. We love it."
Unlike most computers, Chromebooks don't have a hard drive. Instead, they function as terminals dependent on an internet connection to get most work done.
Despite those limitations, Chromebooks have been steadily gaining in popularity, particularly in schools, as more applications and services made available over Internet connections - a phenomenon known as "cloud computing" that has reduced the need for hard drives.
About six million Chromebooks were sold worldwide in 2014, more than doubling from 2.7 million in 2013, according to IDC. In contrast, sales in the overall PC market slipped 2% last year, marking the third consecutive annual decline. IDC is projecting eight million Chromebooks will be sold this year.
