ASUS wants to cement its league-leading position in the netbook market by launching an EEE PC that’s priced at $200 or even less. This price was actually the first stated price for the original 701 before it was bumped up to $299 when it was finally launched.
The only way ASUS can do this is by drastically lessening its production cost or by subsidizing its manufacture with the more expensive models. I’m guessing it would be the former as it is more fiscally prudent.