Microsoft plans India push

SEATTLE -- Microsoft Corp. will sell "affordable" Windows computers aimed at students in India, but the $500 price tag is more than what US consumers might pay for a basic laptop.

Microsoft, with chip maker Advanced Micro Devices Inc. and Indian PC maker Zenith Computers Ltd., said the $500 "IQ PC" runs the most basic version of the Windows Vista operating system and comes packed with the Office suite and programs to help students practice English and prepare for exams. The computer and related online content will be available in Bangalore and Pune on Sunday.

In a blog post, Orlando Ayala, a senior vice president for Microsoft's emerging segments market development group, described the computer as "low cost" and "affordable."

"If they're selling $500 computers in India, that doesn't sound like a big change to me," said Wayan Vota, director of IESC Geekcorps, a Washington, D.C., organization that works on technology projects in developing countries. Vota said that in India, computers can be had for $300.