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ASUS, the makers of the wildly popular Eee PC will now ride its success with the desktop operating system Microsoft Windows XP.

The Eee PC is a tiny laptop with a 7″ display. It’s limited in that it does not have a CD-ROM or DVD-ROM drive of any kind, only 256MB to 1GB of RAM and 2GB to 8GB of hard drive space. It also started without the dominant desktop operating system Windows XP. Instead, it runs a version of Linux.

Dispite it’s limited features, it’s tiniest feature, it’s size, is making ASUS maximum exposure. ASUS decided to cave in and bring out official Windows XP Eee PC and expect that version to take up 60% of all Eee PC sales in the US.

Not all are happy in the PC industry. Sony is already throwing up caution. In an recent Sony Open House event in Las Vegas, Mike Abary said, “if (the Eee PC from) ASUS starts to do well, we are all in trouble. That’s just a race to the bottom.” As long as the Eee PC only appeals to Linux developers and enthusiasts, that’s fine by Abary. “But if mainstream buyers buy it, then whoa,” Abary said.

You see, Sony sells equally tiny laptop that range upwards of $2000. It’s slick laptops appeals to those with deep pockets and status conscious. Unfortunately for Sony ASUS’ Eee PC is a success. ASUS has shipped 35,000 units in the last quarter of 2007. It has launched the Eee PC in Japan and plans to sell it’s XP version in 2008.

Where did ASUS come from? How did it manage to break into the big boy’s club? Well, ASUS turns out is a contract manufacturing firm which makes laptops for Apple Inc, Dell Inc, HP and Lenovo.

ASUS is not the only PC maker to target the thin and light world of notebooks. Apple’s latest MacBook Air, the thinnest notebook in the world, weighs in at $1799. Looks like Sony’s dream of cornering the thin and light notebook market for itself and the deep pockets is coming to an end; making the people’s dream of a truly portable laptop a reality.

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