How Google-Microsoft war is driving PC, tablet prices down

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 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 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 Corp 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. AP