And you folks have not started to factor in the 'free' marketing led by
international celebrities which was both international stage and more
accurately focused on the leadership and budget holders of scores of
countries 'captive' in one location. That's worth hundreds of millions of
sterling £ £ £'s [the highest value currency???]
If we could get that sort of focused marketing to the leaderships for the
stuff that comes before the lap top and makes even more sense out of the
lap top ... ???
Errol Hewitt
----------
At 20:22 25/11/2005 -0600, you wrote:
Yes. And if you have an order of a million, you have something that you
can take to the bank - as opposed to creating new manufacturing
abilities with much more risk on a 'we hope they buy it' basis. It's a
solid business proposition when someone walks in with an order for a
minimum of 5 million units (see the FAQ), it should be pretty easy to do
that... especially considering that the 5 million startup minimum should
be based on the ability to manufacture.
The present margin is $10 million, since the laptop itself now costs
$110. Fab costs aren't something I am privy to, but I suspect you are
right. However, integration costs are probably where the problem is.
Still, it's not my problem and I'm not getting paid to deal with math on
a product which I think is a colossal and foolish cart before a horse.
But on the business end, I'm sure the numbers will jive because it would
be pretty embarassing if someone actually ordered 5 million off the bat
and these folks couldn't produce. In other words, we could go back and
forth all day, but until someone decides to be the test rat, nobody will
know.
Executive Director wrote:
>One million units with a margin of even $20 is $20 mil. Fabs cost $2 to 3
>billion.
>
>Mike
>
>
> Michael F. Pitsch
>[EMAIL PROTECTED]
>
>
>-----Original Message-----
>From: [EMAIL PROTECTED]
>[mailto:[EMAIL PROTECTED] On Behalf Of Taran Rampersad
>Sent: Wednesday, November 23, 2005 2:13 AM
>To: The Digital Divide Network discussion group
>Subject: Re: [DDN] Video: the $100 laptop at WSIS
>
>Executive Director wrote:
>
>
>
>>Taran,
>>There is no evidence to support what you are saying.
>>If they had the capacity or capital to build the capacity don't you
>>think that they would try to supply Dell?
>>
>>
>>
>>
>Well, with a minimum order of a million - guaranteed - the rules change.
>The demand is established, there's no guesswork, decreased risk, etc.
>
>--
>Taran Rampersad
>Presently in: San Fernando, Trinidad
>[EMAIL PROTECTED]
>
>http://www.knowprose.com
>http://www.easylum.net
>http://www.digitaldivide.net/profile/Taran
>
>Coming on January 1st, 2006: http://www.OpenDepth.com
>
>"Criticize by creating." - Michelangelo
>
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>
>
>
--
Taran Rampersad
Presently in: San Fernando, Trinidad
[EMAIL PROTECTED]
http://www.knowprose.com
http://www.easylum.net
http://www.digitaldivide.net/profile/Taran
Coming on January 1st, 2006: http://www.OpenDepth.com
"Criticize by creating." Michelangelo
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