Real Cost of OLPC XO is nearly $1000 Says Report
December 11, 2006 12:05 PM
But end result is still cheaper than anything else
A report is suggesting the famous OLPC
XO machine could actually be costing upwards of $900
, according to analysts. The OLPC XO machine was originally made famous for trying to hit a price target of around $100. Later on in the project however, it was revealed that the price had gone up to roughly $140. Now, analysts are saying that the true cost of an XO machine could actually be around $900 due to hidden costs not actually associated with the hardware itself.
Besides manufacturing there are other costs such as packaging, shipping and other logistics. Of course, there will be people involved in distributing the XO but there will be a cost associated with having teachers trained.
The primary placement for the OLPC XO machine will be inside classrooms. Training is required which analysts indicated as being the most critical aspect of making the OLPC project a successful one. Jon Camfield, a writer for OLPC News indicated that training, maintenance, repairs and other things such as insurance and theft will all add up. Then there are network associated costs. Wi-Fi networks have to be setup so OLPC users can communicate with each other. Upgrades will be part of the equation too.
reported last week that
Microsoft plans to have the XO machines come bundled with Windows XP
, but the storage capacity on the XO's isn't enough, requiring more upgrades.
Despite Camfield's arguments however, it is still true that an XO costs much less than typical laptops, where if being used in a similar situation will have the same associated costs. In that case, the XO is still far cheaper on a whole than an average laptop. Costs aside, the OLPC group is facing competition from
Intel and its Classmate PC
and another company called
Encore Software and its Mobilis tablet
. Competition in the market will always drive down costs.
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