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Why are kids PCs so expensive?

Exactly that - I want to buy my Nieces and Nephew small laptops (they
don't have room in their home for three desktops), but the best price I
can see for an entry level machine is 300 quid.

That's a lot of money for basic equipment in my opinion. If you consider
an iPhone is only a little more expensive, and contains much more
innovative technology. So why hasn't commodity laptop pricing reduced
these to say around 200 quid?

I am hoping this pinch in the economy will drive prices down. That way,
these kids can get a good usable laptop to work through school assignments.

At present, I am thinking of getting this:
http://www.ebuyer.com/product/146032/show_product_overview

Its got good battery life, good reviews, and is Linux rather than Windows.

--
tnn

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