The Bigger Picture

Given the possibly lucrative market for cheap computers in developing nations, AMD isn't the only company making a push for that market. Similarly, given the mindshare offered by a program such as OLPC, other groups are looking at making laptops for distribution.

At least initially the biggest competition for AMD and the OLPC program has been Intel, who established their own OLPC-lite project called the World Ahead Program shortly after the OLPC program went public. The result is the Classmate PC, a laptop similar to the XO-1 but slightly more traditional in design and more importantly built using Intel chips throughout. Rather than taking a hands-on approach with the whole chain like the OLPC organization is doing, the Classmate PC is simply a proposed laptop that Intel will provide the plans and chips for and let other groups build. At least one OEM began production of the machine earlier this year, with a price tag of $225.

As of July 13th, Intel joined the OLPC organization, putting the future of the Classmate PC in jeopardy. Intel had previously dismissed the XO-1 laptop for various reasons, proposing their Classmate PC design as the more appropriate laptop. Given their movement to the OLPC organization, this is a notable if not sudden change in direction for Intel.

To put things in perspective, OLPC head and MIT professor Nicholas Negroponte was accusing Intel of selling the laptop below cost as recently as May of this year. For all of the for-profit parties involved, there's enough of a potential future market in for-profit machines to be fighting over a non-profit machine today. With Intel having joined the OLPC organization, much of the public fighting for access to the developing world's educational market should subside.

With that said Intel isn't completely out of the picture yet. Intel is working on its own competitor to AMD's Bobcat processor, Silverthorne, which would be similarly capable in low-cost, low-power computers for the developing world. Although we're left to speculate on just what made Intel finally join the OLPC organization, we can't rule out that they're being given a fair shot at getting into the successor to the XO-1 (whenever that becomes available). At the very least they will still have access to the same markets AMD does in terms of selling for-profit computers that are not in competition with the XO-1.

ASUS is the other major competitor to the XO-1 and the OLPC organization. ASUS will be selling its Eee PC, which is similar to the XO-1, later this year for a price suspected to be around $200. It uses Intel chips for its underpinnings, but it's not a Classmate PC. Unlike Intel and the OLPC organization, ASUS is not intending to directly get into education with the Eee PC; rather it's going to be a widely sold laptop for anyone looking for a cheap portable computer.

AMD’s Stake First Thoughts
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  • Zan Lynx - Monday, August 13, 2007 - link

    I have to wonder if any complainers have researched what regular school books and supplies cost these countries that are planning to purchase OLPC systems.

    I haven't either, but considering what my college text books cost, I imagine that over the projected life of the OLPC system it will be cheaper than providing actual printed textbooks and study guides.

    I know people like to think of bureaucrats as venal and/or stupid, but I happen to know a few and they are not. So I think the burden of proof is on those claiming its a bad idea, rather than accepting that the people in charge of the project in these countries don't know what they're doing.
  • 0roo0roo - Thursday, August 16, 2007 - link

    well its not very intelligent to assume poor countries have to buy text books at our college text prices. you do know our college texts are seriously over priced and its a racket right? they keep putting out new editions so the professors and companies can keep raking in the money and keep the used textbooks from taking over. even small governments can afford to write basic school texts, we aren't talking cutting edge science texts here. basic math and language, the texts will last for years, paper is cheap, books can be passed down from classroom to classroom.
  • 0roo0roo - Thursday, August 16, 2007 - link


    now imagine all the money that has been spent on this project were instead put towards writing decent textbooks for such countries and keeping it up to date. it would be a fraction of the cost of creating the infrastructure manufacturing and research for this gadget. open source textbooks how about that? no royalties. print them off in china, how much do you think one would cost? 1 dollar a book?
  • creathir - Thursday, August 9, 2007 - link

    I find it surprising that your article does not mention the fact that 1 million units must be purchased by the purchasing government.

    That $75 difference would mean a $75 million price difference... quite a bit if you ask me.

    This project is one of those "feel good" projects which I have not liked from the beginning. It was designed for areas without a stable power grid (hence the hand crank) but I would think they would need stable power before a computer to surf the Internet, not to mention the infrastructure and bandwidth needs to connect to the Internet.

    This thing is such a joke.

    - Creathir
  • jevans64 - Saturday, August 11, 2007 - link

    A million of them are going to Nigeria and are going to be used for Phishing.
  • Dfere - Thursday, August 9, 2007 - link

    "Education still remains as one of the greatest factors in creating and ensuring prosperity, and expanding it is one of the best ways to improve a developing country"

    Yet look at the countries like Greece in the lineup? I didn't think they were third world. And third world countries need a stable government for economic growth first and education second. Perhaps the message of the market for the OLPC is just not clear enough. Perhaps I have not been able to figure this out on my own. But I wonder, is it possible that the backers do not have a clear idea of the market they make this "project" for? Time to market is terrible, especially given that it uses existing technology. How can there be success in this case, even if success is charitable cause as there have been no shipments....

    This is not a venture I would back with my own money. And as a cause to end world illiteracy, it has currently done nothing. I am not sure where extra teachers would not be a better answer in second world countries.

    I am cynical, this project certainly makes for great PR and I cannot help but think that the marketing and branding being exported to lower income areas of second world countries is the ultimate goal of the companies involved and is the return they seek. Much like companies in America that get involved with (and oweners of companies become board members with) the United Way.
  • Great Googly Moogly - Thursday, August 9, 2007 - link

    This will be the biggest flop since IT/Ginger. What an awful waste of developing countries' funds (they will be the ones paying for these after all). Charity? Hardly.
  • stmok - Thursday, August 9, 2007 - link

    I got to try one of these when they were at the Linux Conference here in Sydney, (earlier this year).

    The screen has an additional benefit. You can still see whatever's on the screen in direct sunlight. NONE of OLPC's competitors has the same capability.

    As for ASUS Eee PC, its not a direct competitor. They're (ASUS) are aiming for a slightly different market. OLPC is expressly for developing countries. Eee PC is for anyone else who can afford a low cost mobile solution. (Its far more powerful, but less ruggered). So anyone in a developed country can get one. (assuming they can make enough of them!)

    Interesting to see that in both cases, they use Linux as their default OS.
  • Justin Case - Wednesday, August 8, 2007 - link

    The summary on the main page says "One Child per Laptop Program". Unless it's some sort of breeding program, I think that's the other way around.
  • Ryan Smith - Wednesday, August 8, 2007 - link

    Well we will have an article on that next week on our sister site BioTech...

    Anyhow, thanks for the notice. This is why working at night is not always the brightest idea.

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