Seeing how their Asus eee PC is outselling OLPC by 8-to-1, Asus is seeing a huge opportunity cash in on the low budget market. Who would have known that this much money could be made from selling incredibly cheap products, rather than a small number of high-end gadgets? Capitalizing on the success of the eee PC, Asus is planning “low-cost smart handheld devices” that will cater to the cheaper end of the market.

Much like the eee PC, these inexpensive smartphones won’t look like their destined for the bargain bin. They’ll take on a conventional appearance and will blend in easily with their more expensive counterparts. Contrast this to the green cranking wonder known as the OLPC.

Pictured here is a phone from the Asus MyPal line and it’s quite possible that the cheaper variant will take on a similar form factor, just as Palm did with the Centro. Seeing how the eee PC costs less than $400, the cheap Asus smartphone has got to go for under $100.