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With the announcement has come a range of devices by both Intel and third parties designed with ultra-low cost in mind.

The devices Intel is calling nettops are ultra-low-cost, low-power desktop PCs designed primarily for internet access but still running a full desktop operating system.

The netbook is the same idea extended to laptops, among them the amazingly sleek $370 MSI design we revealed yesterday.

The two reference designs shown by Intel are expected to find their way to OEMs and retail for even less - as little as $250.

In his keynote speech, Intel's head of mobility Dadi Perlmutter confirmed that ultra-low-cost computers are a trend that's exploding in the wake of the OLPC project and Asus' Eee PC.

Intel has specifically designed Atom-based motherboards and systems to be low cost.

"In order to be affordable it needs to be purpose built," said Perlmutter, who

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claimed that a number of measures including putting "a lot of technology into the CPU so you can build a small motherboard" has resulted in systems with "a 20% saving compared to low-cost designs that exist today".

Following Perlmutter, the head of ultra-mobile Anand Chandrasekher confirmed that Atom devices will be available in as little as two months: "The silicon is in production; we've started shipping... we believe you will see these products over the next 60 days."

Other announcements from Intel at IDF have so far included a new platform for mobile PCs dubbed Moorestown, which measures just 5cm square, and the company's surprise entry into the solid state hard disk market.

Intel briefly showed a 160GB SSD at the event, implying that it will improve upon the performance of existing models from other manufacturers. A demonstration PC running the device was shown to load applications almost instantaneously.

The announcement surprised Intel's UK staff, who claimed that they had previously heard nothing of the device.