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The Eee PC was initially conceived as a basic laptop aimed at education and children, but with Asus reportedly selling 350,000 of the lightweight machines in the first quarter it's clear the company has tapped into a wider demand.

That's clearly a matter of concern for Sony, which has so far steered clear of the ultra-low budget laptop market.

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"If (the Eee PC from) Asus starts to do well, we are all in trouble. That's just a race to the bottom," says Mike Abary, senior vice president of Sony's IT product division, speaking to CNet at Sony's Open House event.

Sony is worried that should the Eee PC continue to reach into the mainstream space currently occupied by its Vaio brand, it could begin to shift the market in an entirely new direction resulting in manufacturers having to radically drive down costs to compete.

Abary, believes that the Eee PC is currently occupying a previously untapped niche, with sales bolstered by tech enthusiasts and early adopters.

Unsurprisingly, however, he says Sony will continue to keep an eye out because "if mainstream buyers buy it, then, whoa."

Click here for PC Pro's review of the Eee PC