The netbook craze continues as Computerworld reports that the first portable PC to run Google’s Android operating system will be available in the next three months and will only cost approximately $250.

In addition, the Alpha 680 from China-based Skytone will use an ARM processor similar to those found in cell phones (including the iPhone), not the Atom processor found in most netbooks. Comparatively, the ARM processor is less expensive and more energy efficient.

Other specs include a 533 MHz ARM11 CPU, 7-inch 800 x 480-pixel LCD screen, 128 MB of DDR2 RAM (expandable to 256 MB), 1 GB solid-state disk drive (expandable to 4 GB), Wifi, Ethernet, 3G, USB Ports and an SD card slot. The Alpha 680 is also highly portable, with prototypes weighing only 1.5 pounds and measuring 8.5 inches long and 6 inches wide.

Netbooks with similar specs running off an Atom processor with a Windows OS typically run north of $400.

Android is a Linux-based OS backed by Google. Because there are no licensing fees with Android as there are with Microsoft operating systems, Skytone is able to keep the Alpha 680 price low.