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The processor is the slightly slower Celeron 847, the RAM drops to 2GB and the NAND storage is omitted in favor of a traditional mechanical drive. The 320GB mechanical drive is the biggest concession to cost savings, as it makes almost no sense for an OS so clearly focused on the cloud. It also likely contributes to the battery life penalty this iteration takes; a paltry 3.5 hours, hardly a road warrior then.
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$199 is a great price for a Netbook with the Chrome OS. I am glad to see laptops being sold at under 200 dollars. I bet in a few months to a year there would be a 150.00 Chrome OS laptop once Google lets more companies especially Chinese companies who make Tablets like Ainol, and Lenovo make Chromebooks with the Google OS.