OLPC Manufacturer to Sell $200 Laptop On Open Market

srinravi writes "ArsTechnica reports that Quanta, the company manufacturing the XO laptops, has plans to begin selling low-cost budget mobile computers for $200 later this year. 'According to Quanta president Michael Wang, the company plans to leverage the underlying technologies associated with OLPC's XO laptop to produce laptop computers that are significantly less expensive than conventional laptops.' While OLPC plans to sell the laptops in bulk to governments, which will then distribute the hardware to school children, the XO computer itself is not for sale on the open market. These XO-like commercial devices are still something of an unknown, but it has been announced they'll be using Open Source software."

Comments

They are very insistent on NOT releasing it?

[sethstorm]

For such a device, they sure are wanting to not release it - when that could be a good way to fund such devices. Is there some sort of problem with quality at that kind of mass amount?

Re:They are very insistent on NOT releasing it?

[suggsjc]

Ahh, I've got mod points that I want to use, but I just...can't...stop...typing.

Anyway, first marketing costs? There are people practically begging to get these devices...and even willing to pay more than the "targeted" cost of ~$100. So, if there was ever a case of a product selling itself, then this is it.

Distribution costs are understandable. But at the same time, they have been saying that they won't take orders of less than a million (isn't that right?). So, it isn't necessarily a supply problem...that is if they could actually meet those demands. So couple that with the above paragraph and it seems like there would be at least one millionaire out there that would see this enormous opportunity to snap up a million or so of these and resell for a handsome profit.

All of this makes me casually raise an eyebrow. There are a couple of floating thoughts. First, maybe they feel like this is a *special* project and so only *special* (read: people in 3rd world countries) should get them. Second, (which the parent mentioned) is that maybe they aren't as high quality as us *non-special* (read: spoiled developed nation brats) would demand, and therefore wouldn't even sell in the first place. Third, (my own little thought) is that there are some interesting politics happening behind closed doors.

To the first, I say "get off your high horse" sell them at a markup and re-invest your profits in something you deem worthwhile.
To the second, I say "don't knock it till you (or some other schmuck) tries it". There is practically no potential for loss here. If somebody wants to purchase 1 million units, take their money and run...after you give them the laptops that is.
To the third I say, well actually I have nothing to say since I have no idea is this is the case or what is being said behind those closed doors.

I hope this project succeeds just as much as the next (excluding Dell, HP, Intel, etc shareholders) person. But let's not count any chickens (or laptops) before they hatch.

Cost of distribution and sales

[PIPBoy3000]

I think part of the reason the $200 laptop costs $200 is that they're selling them in bulk to governments. It's then up to the government to distribute it appropriately. If you're doing it yourself, you've got to pay for the distribution infrastructure yourself, which gets tacked on to the cost of the $200 laptop. Now, these days with Amazon and Dell, you can do pretty good at minimizing these costs, but it'll still make it more expensive.

If that ends up bringing the cost of the laptop into the $300-$400 range, you're suddenly competing with the likes of Dell and other low-cost laptop manufacturers.

I hope they do it

[arivanov]

I know at least several cases where people working on medical diagnostics projects have tried to get their hand on the OLPC kit for the purposes of field medical lab automation and have been told to sod off.

There is a long list of diagnostic technologies which require a computer for analysing data in the field. At the moment this means using either a specialised system or a commercial ruggedized portable. In either case the overall bill for a small field lab goes into the many 1000$ range which makes this technology prohibitive for mass deployment. OLPC class hardware would have been the perfect replacement bringing the cost down into a range which will make it affordable.

So if the OLPC gets sidelined and the same kit is available commercially, personally I would give one big cheer. This will mean that people like Medicines sans Frontiers will finally be able to have proper diagnostic (and medical records) kit anywhere they go, no matter how in the middle of nowhere it is.

Distribution Control

[petermmcc]

Am I the only who keeps tabs on this project who worries that the OLPC OX laptops are going to end up in the hands of people who want them as toys or cheap low-cost laptops? Call me cynical but selling these things to governments in Third World countries and expecting the distribution to be done in an honest and ethical way so that every single one ends up in the hands of a deserving child seems hopelessly naive to me. What safeguards are in place to prevent some corrupt government bureaucrat from doling them out to political cronies, black marketeers or any other undeserving party (for financial gain or not) and then just claiming that they have turned up missing or that they never got them and that they need more?

It makes sense to me to sell them outright to the general public but make them pay a fair market price to fund the distribution system so that real controls are in place to make sure that these things aren't sold in flea markets or used for nefarious purposes. I mean the intentions of OLPC are very honorable from an idealistic viewpoint- I'm just very worried that these things in the real world are just going to be too valuable to get passed down to the distribution chain to their intended recipients. We're sending what are essentially consumer electronic toys in to the heart of the poorest places on the planet and expecting that the people in control of these regions won't try to scheme and maneuver this project for personal financial or political gain. To prevent that real controls need to be in place and those controls can only be provided with a distribution system that is well funded. The funding should come from the people who want to buy these things as personal toys with the added benefit that there then will be less incentive for these things to end up on the black market.

Re:Here's an idea

[Speare]

Of course they won't because a child without food or clean drinking water really gets a huge benefit out of a laptop or the support infrastructure to support it.

I know it might blow your mind, but there really are a lot of kids who live in areas that are somewhere BETWEEN the relative wealth levels of "must buy an iPod for my dog" and "must steal more cardboard for the roof". The XO isn't going to help a kid who can't lift her malnourished bones off the hardscrabble. The XO is going to help a kid who would have to travel 10mi to the nearest well-stocked library.

The cellphone has become a major boon for farmers in several countries-- they can call ahead and negotiate their crop's value before spending the resources to haul perishable product to an uninterested market. The XO may have other "game changing" advantages. It will only have the chance to make a difference if the rich people quit naysaying every last little nit based on their own shortsightedness.

How to lift children out of poverty.

[supersnail]

1. Make nice little $200 Laptop.
2. Announce to Geeks around the world "You cant have one".
3. Give Laptop to poor child.
4. Poor child puts laptop on e-bay.
5. Geeks gets kool laptop.
6. Child no longer poor.