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OLPC founder, Negroponte, has a few words for Intel on low-cost laptops

Nicholas Negroponte, founder of the "One Laptop Per Child" initiative, accused chip maker Intel of undermining the OLPC by selling its own cut-price laptop, the Classmate.  Negroponte claims that Intel is trying to drive him out of the market.

According to BBC, Negroponte said that Intel hurt his mission in trying to distribute laptops to kids in developing countries "enormously".  Intel's chairman, Craig Barrett, has denied all claims of undercutting Negroponte's mission, stating, "We're not trying to drive [him] out of business. We're trying to bring capability to young people."

Though the hardware specifications differ between Intel’s low-cost laptops and Negroponte's, OLPC founder believes that the main problem is that his machines use AMD processors, Intel's main competitor. "Intel and AMD fight viciously," he told CBS. "We're just sort of caught in the middle."

Professor Negroponte also claimed that Intel has distributed marketing literature to governments entailing negative aspects of the One Laptop Per Child and outlining superior aspects of the Classmate.  Some of the literature had titles such as "the shortcomings of the One Laptop per Child approach".  Intel responded by saying that it was just making comparisons between the Classmate PC and the other device in the market.

Countries have until May 31 to place their orders for the first round of PCs.  The launch price will be $175 but the goal is to get them down to $100 each.  Intel is taking orders for the Classmate for over $200 each.

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RE: Economics 101
By smitty3268 on 5/21/2007 10:05:50 PM , Rating: 2
Take an econ 101 class. Intel isn't doing this out of the goodness of it's heart, it's doing it for profit.

When you have a market share of about 80 percent

It doesn't matter what your market share is, if you are a company you always try to increase the number of sales you have.

there is really no point in selling high price laptops to underprivileged communities across the world.

I assume you meant low price laptops. Of course there is. If you can't sell any high priced laptops but you can sell cheap ones and still make a profit, then the best course of action is to sell the cheap ones and make a profit.

Your argument is like saying Walmart is opening stores in China out of charity because they already have a huge market share in the US. You know what? Walmart is still looking to expand to new customers, and if they didn't the shareholders would have every right to be upset. The same thing goes for Intel.

RE: Economics 101
By Haltech on 5/22/2007 1:20:45 AM , Rating: 1
I wanted statistics on profit...

So I guess if OLPC is doing this out of their hearts then why dont they give it out free. I mean come on you cant put a price on an education.

RE: Economics 101
By Wonga on 5/22/2007 6:06:17 AM , Rating: 3
Yeah, and I guess all those hardware manufacturers will accept their favourite currency, pixie dust dollars :/

RE: Economics 101
By Oregonian2 on 5/22/2007 5:36:50 PM , Rating: 2
When Intel donates money to the local food bank, they are expecting a profit off of it?

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