DailyTech - Real Cost of OLPC XO is nearly $1000 Says Report

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IT Real Cost of OLPC XO is nearly $1000 Says Report
Tuan Nguyen (Blog) - December 11, 2006 12:05 PM

29 comment(s) - last by KashGarinn.. on Dec 12 at 6:18 AM

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 The OLPC XO machine was originally made famous for trying to hit a price target of around $100.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. DailyTech 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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RE: Good Intentions are worthless without results.

By borowki on 12/11/2006 3:19:47 PM , Rating: 2

Give a hungry man a OLPC and he surely will starve to death.

I say we stick with giving out fish and fishing poles.

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RE: Good Intentions are worthless without results.

By peternelson on 12/11/2006 5:02:59 PM , Rating: 2

Give a child a crippled computer, and his parents can sell it to put food on the table for the rest of the month.

So, the teachers need training? If the OLPC model of learning from computer based material, why cannot those teachers actually use the thing to learn whatever it is they think the teachers need to be trained in?

I think it's more about people making money from complementary training services, installing wifi backbones etc. It's the insurance companies making money out of the increased theft risk. Also having a computer in your house will make it more likely to get broken into and take anything else they find.

ODPF = One desktop per family (or per village). That will teach people to SHARE computers. The $100 OLPC may have had good intentions but was ill conceived from the outset. And if it now ships with windows that is likely just expanding a customer base for ms office etc.

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RE: Good Intentions are worthless without results.

By borowki on 12/11/2006 6:27:47 PM , Rating: 1

That should be "Taking $100 from a poor family and giving them a crippled computer." OLPC is not charity. The computers are paid for with money belonging to these people.

DTPM = Don't Take People's Money.

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RE: Good Intentions are worthless without results.

By KashGarinn on 12/12/2006 6:18:04 AM , Rating: 2

Nononono the quote is "Give a starving kid an OLPC, and he'll grind gold in wow to sell on ebay"

Of course, the fishing quote should go:

"Give a person the awareness that food resources are finite and only care, work and planning will help increase those resources within a stable society, and a stable society will help to begin building products and jobs for more people"

But hey.. fishing poles.. much cheaper than education.

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"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive