Microsoft will slash the price of Windows XP for low-cost laptops, but it will apply only for ultra-portables that meet a strict set of specifications.

Many seem to think that this is a move that will bridge the digital gap between the "modern“ world and developing countries, especially after ultra-portables proved to be a hit in those parts of the world. On the other hand, you might also see it as a last attempt to squeeze the last drops of cash from XP before they dump it in favor of Vista. 

A copy of Windows XP Home on a low-cost laptop will be sold to PC makers in China and India at a price of $26. In the U.K. and U.S. this will be $32.

Microsoft's specifications for these price cuts are as follows: the device must have no more than 1GB of RAM, a drive of op to 80GB, a processor of 1GHz and below, a maximum 10.2-inch screen and no-touch screen.

More here.