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Re: [LUG] $35 Linux Laptop

 

On 22/09/10 21:04, Simon Waters wrote:
> On 22/09/10 17:18, tom brough wrote:
>>
>> Impressive IF I can really get one for $35 dollars.....
> 
> You won't get it for $35.
> 
> Capitalism may be bad at many things, but I suspect the cost of consumer
> electronics in such a competitive market is pretty close to rock bottom
> already.
> 
> $35 sounds like a manufacturing price from the announcement, it excludes
> software.
> 
> With the Simputer there was a significant manufacturing license fee, and
> the device only sold 4,000 units, resulting in no one making any money.
> 
> So assume 1,000,000 USD license fee (to pay for the Indian scientists),
> chuck in 100% retail mark-up, and maybe another 20 USD per unit for
> software costs, and you are talking about ~120 USD device retail. If you
> can guarantee selling more than 50,000 of them one might even make a
> profit at that price.
> 
> You can already buy Brand name tablets in the 120 USD price range
> running Android if that is what you want.
> 

Yes but the price to students in India will be $35 which can only be a
good thing (for them). Accepted that worldwide price will inflate but I
would hope not to the extremes of $120. However even if this is so it
reaches a market price better than OLPC which only managed to crack the
$200 mark.

As I understand it the Indian governments first batch is 1 Million @ $35
dollars. So larger batches would presumably drive costs down even more.
The only thing we can do is wait and see what really happens, but
frankly I hope the Indian Government get a good return on such an
investment.

Tom.


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