One Laptop Per Child: Charity, Prosperity, & Capitalism In The Developing World

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.