The Classmate PC is Intel's initiative in the market of low-cost PCs for children in the developing world. Much like with the OLPC project, the sub-$300 laptops were designed with basic specs that would make them affordable enough for governments to use in social programs, and to expand its reach where resources are more scarce than in first world economies.
However, once again just like with the OLPC's XO laptop, the Classmate has seen limited success and a slow adoption. During Intel's Developer Conference this week, the company showed a new second-generation Classmate that uses the same ULV 900 MHz Celeron-based CPU, but improves storage to up to 4GB, offers the option of a 7" or 9" color LCD screen, adds mesh Wi-Fi support, it's more lightweight, and offers an optional camera. The Classmate is also designed to run either Windows XP or Linux (a number of different distros are being used depending the market).
Intel is also rumored to begin selling the Classmate PC in the US and Europe by the end of this year, though no formal announcements have been made so far.