To me a better target might be a really inexpensive desktop replacement. Almost everyone I know now has wifi unless they live in very remote places. The combination of Google Office and OS would meet the needs of about 90% of the folks. Word processing, web surfing, video streaming, social networks, etc.. would all be covered. The only thing I see missing is a replacement for Quicken.
Just think how nice it would be to set up your parents or grandparents on a PC that is always up to date, gets no viruses and is really easy to use. With a low price that would be a very compelling story.
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