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Low-Cost Simputer Fails to Win Indians' Interest

prostoalex writes "The Associated Press looks at the Indian low-cost Simputer project and registers it as a failure. Picopeta sold 2,000 units over the past year, while Encore Software sold 2,000 Simputers. Only 10% of the devices were bought for rural areas, which the device was originally designed for. The reason? The companies need to sell quite a few simplistic monochrome devices to allow for the low price tag of $200. Meanwhile, anyone can buy a powerful device with a color screen for $199 from a major vendor."

20 of 193 comments (clear)

  1. Surprise by bostonsoxfan · · Score: 5, Insightful
    I don't find this as a surprise at all. This was doomed to fail because they didn't really have the full backing of a major company. At least someone is trying to cover the technology gap but it will take more time with lower prices in the semi conductor industry.

    But if it is for rural villages how do they expect to power these units. And what about dust and computer illiteracy, those things would be bigger obstacle than cost in general.

    Move on people nothing funny here.

    1. Re:Surprise by Saeed+al-Sahaf · · Score: 4, Insightful

      No, it failed because people want REAL computers, and REAL computers are CHEAP. Why fool around with a toy?

      --
      "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    2. Re:Surprise by bcrowell · · Score: 4, Insightful

      The thing is, if there are frequent blackouts or brownouts, it doesn't hurt a TV the way it would hurt a computer.

  2. WTF by Profane+MuthaFucka · · Score: 4, Insightful

    You mean a project to create a low-priced commodity failed to compete successfully against something that is already entrenched as a low-priced commodity? That's unpossible!

    I wonder what this means for my own startup company. We're going to make a lot of money selling inexpensive versions of pencils. Since people all over the world spend almost nothing at all for pencils, and there's really not much opportunity to improve a pencil, I'm sure my company will be a great success.

    --
    Fascism trolls keeping me up every night. When I starts a preachin', he HITS ME WITH HIS REICH!
  3. Dell India doesn't sell PDAs by Anonymous Coward · · Score: 4, Insightful

    So you can't get support if you import one. Plus I doubt they'll be localised appropriately.

    Also, prices vary region to region - the same PDA costs 1/3 more in the UK for instance.

  4. Good try. by jcr · · Score: 4, Insightful

    Not every effort to do a Good Thing is going to work out as one might hope. My hat's off to the people who did this project.

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
  5. heh.. by Aeron65432 · · Score: 5, Insightful

    Is anyone actually surprised? Look how Windows XP Starter kit has been doing!

  6. Dell PC completely misses the point by EmbeddedJanitor · · Score: 4, Insightful
    First off, the Dell outlet isn't in India. Second, a PC uses a lot of power, is big and fragile. A Simputer is, OTOH small and uses only a little power.

    Having never been in India, but I did spend a lot of time in third-world Africa, I think the biggest issue is that the third world does not really get a huge gain from computers. The typical third-worlder does not need to write spreadsheets or take digital pics and does not have an urge to contact his buddies over IM. The typical third-worlder does not have a phone (heck hasn't even used one) has no running water or electricity. $200 is a lot of money - might be a whole familie's yearly income. Would you buy a PDA for $50K? Rather spend it on some food/medicine or a new sheet of plastic to put on the roof.

    --
    Engineering is the art of compromise.
    1. Re:Dell PC completely misses the point by flyingsquid · · Score: 4, Insightful
      I completely agree. What people need is clean fresh water, better agricultural technology, basic education, birth control, health care, access to capital, roads, electricity... sure, computers are on my list, but only if you've already got all of those other things.

      Now, what I'm gonna say here may not go over well with the Slashdot crowd. I think America has done really well with technology- semiconductors, cars, aircraft, the A/C motor, the lightbulb, the phonograph, the telephone, TV, the PC, etc. etc. For each of these, America either did it first or made the first practical version of the technology. And America has prospered in large part because of this Yankee Ingenuity. But I think that Americans have drawn the wrong lesson from this- they automatically assume that any problem is a technological problem first and foremost. Throw enough high technology at it, and it'll all be sorted out. Well, it's just not that simple, and this misconception creates major problems whether we're combating poverty, or Iraqi insurgents, or what have you.

    2. Re:Dell PC completely misses the point by YrWrstNtmr · · Score: 2, Insightful
      clean fresh water
      Technology.

      better agricultural technology
      Technology.

      health care
      Technology.

      roads
      Technology.

      electricity
      Techhnology.

      When you say that they need all of those things, you ARE saying they need more tech. Maybe not "a PC in every living room", but most assuredly with a higher level of tech that they have now. How do you design a better water purification system? Or irrigation for crops? How to control efficient distribution of vaccines? How to get that knowledge to the villiage doctor?

      Better tech. 2 cans and a string doesn't make it. Think beyond consumer goods like TV's and mp3 players. Think of a group of sheepherders finding out about a disease running wild in a village a dozen miles away. And then finding out how to protect their herds. Think of a kid in that village. Instead of growing up to be a sheepherder, 'just like dear old dad', he can actually have an idea of what life is like beyond the local field.

      What's REALLY needed is to combat local and national corruption. Many, many times...aid in the form of food and materials have been donated, only to be left rotting at the docks, because local head chief A wanted a kickback from local chief B.

    3. Re:Dell PC completely misses the point by Cerebus · · Score: 2, Insightful

      Actually, rural farm computing can have a significant impact as long as it comes with effective communications.

      --
      -- Cerebus
    4. Re:Dell PC completely misses the point by Anonymous Coward · · Score: 1, Insightful

      India isnt third world country... now you are completely missing the point!

  7. Firesale Prices vs. Real Prices by billstewart · · Score: 3, Insightful
    It looks like a cool device for $25. But it's really a $100 device that didn't sell (so maybe it wasn't all that cool, or at least not enough cooler than a Palm to get market share.) That doesn't mean you can mass-produce it at a profit for $25 - it means that somebody's got pallet-loads of the things that they're selling off to get back some money for them, and when the pallets are empty, they're not building any more.

    It's kind of like all of those Internet Appliance things that didn't sell back during the boom, but were fun for hackers to pick up cheap and modify.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  8. Re:Mass production by 1u3hr · · Score: 4, Insightful
    D'oh! If you have the choice between making it cheap by removing features XOR making it cheap from mass production with full features, choose to keep the features.

    So what features were removed -- colour screen? -- it never had one. In any case, the idea was never about eye-candy but simple practical business and educational use, and low power consumption. You, and "prostoalex" are comparing two quite different devices. The article cited does not mention the cheap Dell handhelds he linked to, apparently Prostalex imagines Indians can buy from Dell online and get them delivered by FedEx for the same price he can. Dell India doesn't even sell handhelds.

  9. Alternatives have more attractive free software by atomic+noodle · · Score: 2, Insightful

    Linux-based systems like the Simputer have a problem competing against Windows/x86 machines in third world markets.

    The problem is that Windows-compatible software is effectively free, due to piracy. And, even if it isn't strongly marketed locally, that software is made more attractive by all the money spent promoting it elsewhere.

  10. Re:The project was doomed from the beginning by jhoger · · Score: 2, Insightful

    You minimize the advantage of using standard batteries as though it doesn't matter. That's a big part of the reason I still use a Palm IIIxe and my Tandy Model 102.

  11. *Rollseyes* by iehnll · · Score: 3, Insightful

    Do companies get it yet? Rural or less economically powerful countries don't want watered down computers. They don't want to be treated like second class computer users. They don't want a gimped version of windows when they can pirate a fully functional one. They don't want cute small, yet utterly useless computers. Those who don't have computers now, either cannot afford a several hundred dollar computer, or cannot afford even $200. And those without electicity don't have a need for one.

  12. Re:Lack of education.. and many more... by JesusCigarettes · · Score: 2, Insightful

    and some 70% of the country doesn't know what a computer is either or what it is used for

    Why is there so much of this drivel posted about this topic?

    People in India aren't retarded monkeys, you know. Seriously. They have things called 'cities', and 'automobiles', and even poor rural folks go into the city to sell their shit and see rich urban Indians using their cell phones and laptops.

    India is not some sort of medieval wasteland of mindless serfs who run away because they've never seen electricity before - it's just a country with a lot of people who can't afford most luxuries that we take for granted, and quite a few people who can't even afford necessities. They still *see* the technology, and they know it exists.

  13. Yugo failure by Trurl's+Machine · · Score: 2, Insightful

    I think it's similar to the famous Yugo failure. The flawed premise in "cheap computer" or "cheap car" strategy is that people in the market for sub-$5000 car or sub-$200 computer are actually willing to buy them brand new. No, they are not. People in the market for a cheap car will rather go for a 5-year old Ford. People in the market for a cheap computer will either buy something second hand or try to build their own system. Especially that you still have better service options with a 5-year Ford than a brand new Yugo - or a second hand Dell or Compaq than a brand new Simputer.

  14. You don't know the third world by mangu · · Score: 2, Insightful
    I have lived most of my life in Brazil and I have seen plenty of mud huts in my life. Sure, the poorest people do need running water, sanitation, basic education, etc. But giving them welfare doesn't solve their basic problem which is the inability to earn a decent living. In my 40+ years of life I have seen a huge gain in living conditions among the poorest people in Brazil, and cheap phones have benn a big factor in this in the last decade.


    Up to the mid-1990s telecommunications were a state monopoly in Brazil, and a fixed phone cost the equivalent of $7000 in some areas, a cell phone went for about $4000. Today you can get a fixed phone installed for about $15 and a cell phone for $70 in ten installments.


    So what, will you ask? How does this help someone who has no running water? Take a typical illiterate single mother living in a slum? It means she can advertise and sell whatever skill she has. It will still be very low-paying jobs, because she has no sophisticated job training, but she can get more for it. Instead of working for one employer at $100/month she can do jobs for different people at $15/day.


    Technology is always useful. And technology that enables one to be more productive is always better than handouts. There are many well-meaning people in the rich countries who would better learn this very simple lesson. Give poor people a technology to become more productive workers and they will get their own running water.