Fourteen months ago I wrote an editorial, suggesting that Apple should create an ultra cheap machine to battle the PC world. On that article, I suggested some specs for the hypothetical "Strawberry" computer. As technology is moving on fast, I am now updating these specs. To get the idea though, please make sure you read last year's article before you read on this one.
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I seriously doubt a ppc machine could be built at that price point.
The machine would have to have a x86 chip to be sold at that price. Assuming Apple already has the OS ported as rumored.