$100 Laptop Still $400, But Now With More Advertising
from the market?-bah dept

http://techdirt.com/articles/20081117/1650472854.shtml

Nicholas Negroponte's One Laptop Per Child initiative has received 
plenty of press over the years, though we've never quite fully 
understood it. While the idea of making cheap, durable laptops available 
to people worldwide has some value, the benefits haven't been fully 
explained and Negroponte's thoughts on how best to deliver them have 
been a bit perplexing. In particular, his apparent belief that 
competition in the space is a bad -- when competition might actually 
help realize the goal of a $100 machine more quickly than if OLPC goes 
it alone. In an attempt to boost volume, OLPC is getting a bunch of 
media companies to donate airtime and and ad space for a marketing 
campaign for the machine, trying to drive donations or sales under its 
"Give One, Get One" program, where people can spend $400 for an XO of 
their own, while another one gets donated to the cause. The head of the 
agency which created the ads for the campaign says they'll help build 
the economies of scale necessary to get the XO laptops down to the 
magical $100 price point.

Meanwhile, the prices of other netbooks, as these things do, continue to 
fall. While none are yet down to $100, it's hard to imagine that it will 
be too much longer before somebody breaks the barrier. And it probably 
won't be the OLPC group. With that in mind, Negroponte's 
anti-competitive, go-it-alone stance continues to confuse. If the market 
and competition can drive prices down, that's great for the OLPC 
mission, right? So why not abandon the single-product model (especially 
since hardware is basically a commodity, even with the XO's features), 
and focus on getting as many devices as possible -- even if they're 
another brand -- into schools worldwide? If the real OLPC innovation is 
the software, install it on the machines. It would certainly seem that 
the best course of action is to do whatever will drive the cost down the 
most quickly, and somehow using the growing consumer netbook market, 
rather than OLPC standing alone with its own machine, would do that. 
Negroponte seems hesitant to acknowledge that the bigger market can 
actually help OLPC's mission, even when ignoring that fact hampers that 
mission.
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