Foleo, eat your heart out! Meet the Asus' new Eee PC 701

The 7-inch ultraportable is based on an unnamed Intel chipset, and runs
regular Windows XP or Linux without a problem, but really shines in its
"easy" mode that strips things down to a barebones OS mainly for
internet browsing. The Eee line will kick things off with the Eee PC
701, which will sport 802.11b/g WiFi, Ethernet and a modem for
connectivity, along with a webcam, 512MB of RAM and a 4, 8 or 16GB flash
drive for speedy, reliable storage. The real kicker is that prices for
the 2 pound laptop are supposed to start as low as $200, and the Intel /
Asus duo won't be aiming this at massive governmental purchases, but
instead will be offering it to consumers through traditional retail
channels.

Source: engadget.com