Real Cost of OLPC XO is nearly $1000 Says Report
December 11, 2006 12:05 PM
comment(s) - last by
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 The OLPC XO machine was originally made famous for trying to hit a price target of around $100.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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RE: I suppose
12/11/2006 4:02:23 PM
How is a $400 computer better than a $100 computer? You think the $800+ "channel" costs associated with the OLPC are going to evaporate because of an MS product?
What was, I believe the main point of the article, and was only briefly touched by creatir was...
The $100 laptop per child was and is a myth. There are so many other costs associated with GETTING them there, and TRAINING and INFRASTRUCTURE that $100 is laughable.
Before you flame, I am not against the idea of helping ramp up third world classroom standards. I am against the "feel good" efforts by people who want to think better of themselves by being "for" this project which was - for some of these very reasons cited above, a total failure. We should be addressing the basic needs of those societies so that they can GET to a point where a cheap PC can be made and used. As previous dissenting opinions posted have been saying for months or a year now- What is the point in a laptop , when there is inadequate classroom staffing, or even roads, peace, clothing food and water to which someone can even use it under ?( oh and did I mention WI-Fi too?).
If we want to make a difference is it not going to take real work and sacrifice? Who is ready for that?
RE: I suppose
12/11/2006 4:50:45 PM
Look at Intel's model. They REMOVED the channel. They not only are decreasing the costs by making them in the region of delivery, but on top of that, they provide JOBS.
Intel indicated already that they had solved that issue, and it had nothing to do with an MS OS, but rather the method of production.
Also, I would definetly trust something a LOT more if it was from a major player in the computer industry than custom hardware with custom software. If I had to bet, Intel's ability to estimate real world costs is vastly superior to some college professor that is pushing theories around.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
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