Advanced Micro Devices is to launch a low cost Personal Internet Communicator.

The device will be based on AMD’s Geode GX chipset and will run a cut-down version of Windows and Office-compliant applications. It will be a sealed unit without a fan, which will be more robust in harsh conditions, as well as preventing inadvertent mishaps on the part of users.

AMD is recommending a price point of around $185 for the device including a mouse and keyboard, or $249 inclusive of a monitor. However, the company expects the devices to be bought on micropayment plans administered by service providers, removing the need for a hefty upfront charge.

Initial service partners include the Tata Group in India, CRC in Mexico, and Cable and Wireless in the Caribbean. AMD’s collaborators will be able to tailor the product to their markets. Contract manufacturer Solectron will make the device, while other technology contributors include Seagate and Samsung.

Users in the developing world are one of those elusive markets, along with SMEs, that Western IT vendors are looking towards as they look for new sources of growth. Intel has described how it is examining ways of developing products that can fit the budgets of less affluent countries. Microsoft has been bullied into producing cut down versions of Windows for use in countries like Thailand and Russia, partially to offset the appeal of cheaper alternatives such as Linux.

However, developing products specifically for developing markets poses some problems. Vendors, for example, will resist being palmed off with an inferior product. At the same time, if the cut down products really are comparable in performance to the premium devices being sold to Western customers, vendors will have to guard against such products leaking into developed markets and undercutting their mainline brands.