AMD Low-Cost PIC PC Discontinued

Advanced Micro Devices (AMD), a computer chip maker, has stopped production of its low-cost Personal Internet Communicator (PIC) PC, which was meant to help bring the Internet to more people in developing nations, because the machines were not profitable, the Associated Press reports via WashingtonPost.com.

The information comes from a regulatory document filed with the U.S. Securities and Exchange Commission (SEC) last week, according to the AP.

The PIC was first launched in 2004 and it sold for $250 with a 15-inch display, according to the AP. It was offered in such countries as Brazil, China, Mexico and Russia, though the SEC filing says the machine failed to generate strong sales, and many of those that were purchased were returned, the AP reports. AMD in the past said that it expected to make a profit on sales of the PIC, regardless of the machine’s low price, according to the AP.

Within the filing, AMD attributed some $16 million in operating losses for 2006’s first nine months to write-offs pertaining to the PIC and related products, the AP reports.

On Monday, AMD said it will maintain its partnerships with the nonprofit One Laptop Per Child group, which is also working to build low-cost machines for use in developing nations, according to the AP.

In related news, AMD competitor Intel, another chip maker, is also producing low-cost computers meant to help bridge the digital divide, as part of a $1 billion, five-year effort.

Related Links:

• Intel Touts New Low-Cost Laptops

• ‘$100 Laptop’ to Roll Off Production Lines in Q2 ’07

• Microsoft Vista Starter Edition Targets Developing Nations

Check out our CIO News Alerts and Tech Informer pages for more updated news coverage.