Now, I don’t think Google will make a PC. I think Google will:
a. launch calendar and office suite in the next six months.
b. by the end of the year they will come out with a Linux-based OS and offer it for free to PC makers. Those PC makers will love Google for giving them a free OS and Google will love extending the reach of their money maker: google Adsense.
The big win: Google can offer PC makers something they have never had: reoccurring revenue. Not only can Google give a free OS and office suite, they could offer them 10% of the Google Adsense revenue of that computer/user–FOR LIFE!
Can you imagine if Dell or Compaq could not only sell a computer for $500 with $50 in profit, but also make another $25-50 a year in Adsense revenue? The person keeps the computer for another two years and Dell makes more from the Adsense than the computer.