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Christopher Dawson

How can India build a $35 tablet? More details emerge

By | July 24, 2010, 9:02pm PDT

Summary: It’s not exactly a $35 pipe dream, but this is starting to sound an awful lot like OLPC, circa 2006.

On Friday I covered the $35 tablet prototype that the Indian government unveiled. Over the weekend, it’s been called everything from the “future of computing” to “devices [that] cannot compensate for [India's] crumbling education infrastructure and absenteeism of teaching staff.” A few more details have emerged, however, suggesting that this prototype is a lot closer to a reference spec than something that will see the light of day soon.

I started digging into this a little bit further when a little birdie from Intel said “It doesnt add up - the sum of the parts is no where near the whole cost they are claiming…” Not a literal birdie, of course, but I’m waiting for an OK to attribute the quite reasonable statement to a source. Regardless, both the Times of India and thenextweb.com shed a bit more light on the device.

According to the Times of India,

HRD ministry has made an open invitation to one and all to come up with more variants that fulfills specifications spelt out by it. The ministry has set up several separate teams, which are involved in bringing out their prototypes…The $35 price, [human resources development minister Kapil Sibal] said, is inclusive of cost of manufacturing abroad. However, the cost of the solar panel has not been factored into the price yet….At the current price point of $35, Sibal said, there would be 50% subsidy to educational institutions, which will effectively bring down the cost to only Rs 750. The initial order will be for no less than one lakh laptops.

On lakh, by the way, is 100,000. So not only is it apparent that the prototype only lays out the specifications for the tablet but that cost estimates rely on predictions of massive economies of scale and local government large-scale purchases. If this sounds familiar, it’s virtually the same rhetoric that Nicholas Negroponte used to convince the world that he could build a $100 laptop.

thenextweb.com quotes a report from the AP in an update to their initial coverage of the device:

India plans to subsidize the cost of the tablet for its students, bringing the purchase price down to around $20.

“Depending on the quality of material they are using, certainly it’s plausible,” said Sarah Rotman Epps, an analyst at Forrester Research. “The question is, is it good enough for students?”

Good question, Ms. Epps. The specifications for this device are actually quite compelling, as is the goal of cheap, ubiquitous connectivity and access to the cloud via devices that are genuinely affordable. As with OLPC, however, the opportunity costs may be too high at this point, as many schools in India (as in other developing countries) struggle with simple infrastructural issues. An editorial in the Times of India rails against the government’s approach:

When most of our government-run schools in the villages don’t even have basic infrastructure such as furnished classrooms, blackboards and toilets, our officials are itching to bring in subsidised computing devices.

This isn’t to say that development efforts for highly-affordable student-centered computing devices shouldn’t continue in India and elsewhere. On the contrary, devices like these have the potential to leverage extraordinary advances in cloud computing and be part of both modern, connected classrooms as well as bridging the digital divide. A little dose of reality and perspective, however, is mighty important as we move towards those goals.

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Chris Dawson is a freelance writer and consultant with years of experience in educational technology and web-based systems. In 2011, he became the Vice President of Marketing for WizIQ, Inc., a virtual classroom and learning network SaaS provider.

Disclosure

Christopher Dawson

Christopher Dawson is the Vice President of Marketing for WizIQ, Inc., by day and a freelance writer and educational technology consultant by night. Well, most of his colleagues at WizIQ are based in India, so really he's working with them whenever he can stay awake. He has worked for his local school district as a teacher and technology director, for the Johns Hopkins University School of Public Health, and for Biogen, Inc. (now Biogen-IDEC, Inc.). He has also consulted with STATNet and Cytyc Corporation and retains close ties with X2 Development Corporation (now owned by Follett Software, the supplier of the student information system he administered for several years). Follett is paying him a monthly honorarium to act as a presenter for their "SIS Voices for Student Achievement" community (he produces occasional blog posts and hosts a monthly webinar on the use of student information systems to inform data-driven instruction and school-wide change. He regularly purchases and/or recommends Dell hardware. This is because Dell makes good hardware and has truly committed itself to education in innovative ways, particularly with their "Connected Classroom" initiative. It isn't because he has dealings with the company through his role at WizIQ (which he does) or because they have provided him with long-term loans of a variety of equipment for in-depth testing (which they have). Intel (reference designer for the Classmate PCs he has implemented in his local schools) has provided him with long-term loans of Classmate PCs for testing, as have Dell and Lenovo with their educational offerings. He may report on any of these companies as his experiences with them have direct bearing on educational technology; positive reports are not necessarily an endorsement and he receives no direct financial compensation from these companies or any others. Intel paid all expenses for his attendance at the 2009 Intel Classmate PC Ecosystem Summit which he attended as the sole representative of the technology press. He was invited to attend in 2010 but his wife would have killed him if he spent 3 days in Vegas geeking out and left her home alone with a new baby. Acer provided him with a 50% discount on an Aspire One netbook in early 2009 after he tested it for 30 days through their educational seed program. He liked the netbook at the time but it has since broken and sits unused in his office. Canonical sent him Ubuntu lanyards, t-shirts, and mousepads for his kids. He stole one of the lanyards and proudly hangs his keys from it and occasionally features his 8-year old wearing an oversized Ubuntu t-shirt on his Facebook profile. Gunnar Optiks sent him a pair of computer glasses to evaluate for a holiday gift guide. He is wearing them now as he types this because they never asked for them back and they rock out loud. Seriously - they work brilliantly and make it much easier to spend 20 hours a day staring at an LCD. If they ever asked for them back, he would fork over the $99 and buy a pair. Microsoft gave him 2 free copies of Office 2010 professional, a desktop clock, and a useless book on Office 2010 when he attended the launch of Office/Sharepoint 2010. He occasionally uses the SharePoint lanyard they gave him instead of the Ubuntu lanyard for his keys, but feels dirty afterwards. Adobe provided him with a pre-release version of the CS5 Master Collection for evaluation and ultimately provided a full, licensed copy for ongoing testing of educational applications of this admittedly expensive software. Like the Gunnars, if the license expires or they come out with CS6, he'd actually go out and buy it himself. Which is saying something, because he's actually pretty cheap. Any other companies wishing to send him cool things to evaluate, wear, or otherwise adorn his kids are more than welcome to; he promises to disclose it here if he keeps any of the stuff. Finally, because WizIQ is a virtual classroom and learning network provider, Chris, as VP of Marketing, frequently interacts with, seeks out deals with, and directly or indirectly competes with a whole lot of LMS, SIS, and other Education 2.0 companies. In general, he'll limit his reporting about these companies to news that does not impact his relationship with them or with WizIQ. If he reports on them, it's because what they are doing is newsworthy or worth the attention of his readers and not because he's trying to broker some deal, damage competition, or otherwise advance his position in his day job. LMS and SIS companies, along with other online learning communities, are a pretty important part of Ed Tech. If he stops reporting on them completely, there won't be a whole lot left. He'll be sure to call out any overt conflicts of interest if they are unavoidable. Finally, Follett Software Company pays him a little tiny honorarium every month to present on their SIS Voices webinars and to write the occasional blog or discussion thread for them. Since Follett recently bought X2 (maker of an awesome web-based SIS that Chris just happened to have used, served in advisory groups for, and frequently reported on), this is probably also worth disclosing.

Biography

Christopher Dawson

Christopher Dawson grew up in Seattle, back in the days of pre-antitrust Microsoft, coffeeshops owned by something other than Starbucks, and really loud, inarticulate music. He escaped to the right coast in the early 90's and received a degree in Information Systems from Johns Hopkins University. While there, he began a career in health and educational information systems, with a focus on clinical trials and related statistical programming and database modeling. This focus led him to several positions at Johns Hopkins, a couple-year stint in private industry, teaching high school math and technology, and 2 years as the technology director for his local school district. Most recently, he started his own consulting business and is now the Vice President of Marketing for WizIQ, Inc., a virtual classroom and learning network provider. He lives with his wife, five kids (yes, 5), 2 dogs, and a hateful cat in a small town in north-central Massachusetts. Although he is no longer teaching, his roles with WizIQ and ZDNet allow him to continue helping students and teachers add value to education with technology rather than merely adding to the bottom line.

Talkback Most Recent of 31 Talkback(s)

  • RE: How can India build a $35 tablet? More details emerge
    Having grown up in India, it is evident that India's economy is growing despite its government while in China it grows because of it. Tata's announcement of Nano was credible precisely because Tata is a reputable, private company. The $35 laptop announcement was made by a government minister. Therefore it is highly suspect.
    ZDNet Gravatar
    smpv76
    24th Jul 2010
  • ZDNet Gravatar
    coolkams03@...
    24th Jul 2010
  • RE: How can India build a $35 tablet? More details emerge
    Dear Mr Dawson,

    I am sure that you did your due diligence and your article casts a doubt that $35 for a tablet is not a realistic number.

    I beg to differ. Lets analyze your points -

    1. Info you got from your inside source in Intel - Your source is not denying that it is not possible, but wondering (I am guessing from the verbage) about its feasibility. There is no reason for a chip maker to admit that somebody else could come out with a cheaper processor. Well, the IITs are premier institute of India and has brilliant minds who are capable of innovation. Had MIT come out with a product like this, your little birdie would not have made the same comments.

    2. Quote from Times of India - The quote says that the HRD Ministry of India is inviting more variations to bring the cost down to $20 or even $10. It does not say anywhere that the $35 number is not realistic.

    3. Cost estimates rely on predictions of massive economies of scale - One lakh is not a big number. Just to give you a perspective, Apple claims to have sold 30 lakh (3 million) iPads in 80 days. India has a big population with 11,800 lakh (yes 1.18 billion) people and if we take a mere 1% who will be interested (pure speculation here, but a safe lower number) we end up with 118 lakh.

    I do not know the specifications of the tablet (and I read your article in the first place in hope that your article would shed more light on specs) but I have seen $199 notebooks (with larger screens, hard drive, keyboard, better processor) and the cost of electronics goes down over time. If you have bought a USB flash drive in the early days, you could relate to this - a mere 256 MB flash drive was costing way more than what a 16GB drive costs today.

    Also, I think $35 may not be off the mark, as it is not a commercial undertaking to make a profit out of it.

    So you see, your post is not very convincing, at least to me.

    Thanks,
    Manas
    ZDNet Gravatar
    john@...
    24th Jul 2010
  • $35 USD is simply not realistic.
    @john@...

    From the cost of chargers, batteries, screens (touch components included), memory and other items, the current BOM based on 10 lakh units is over $47 not including assembly and production. Trimming $12 USD at a 1 lakh count while adding in the price of production, warrantee, DOA, shipping and other aspects of cost, sounds like a very very tall order.

    Had MIT, CalTech or USC made the same announcement, they would have been equally questioned.

    Personally, this sounds more like a political wet dream of an over-ambitious
    ZDNet Gravatar
    Bruizer
    25th Jul 2010
  • ZDNet Gravatar
    Agnostic_OS
    25th Jul 2010
  • What does it really cost?
    I saw the bill of materials that AgnosticOS listed. Yes, it does total to $35. However, as stated by others, anything that is manufactured has to cost more than what the core materials cost. There is assembly, overhead for the building where it is assembled, boxing for shipping, trucks to haul the goods to market. The cost of the core material is a very small percentage of all of that.

    And, last but not least, it isn't much good to have a computer with no software on it.
    ZDNet Gravatar
    LadyGray
    26th Jul 2010
  • You are probably right
    @Bruizer See this article on the Ford Sync system: http://www.tgdaily.com/business-and-law-features/36175-the-cost-of-ford%E2%80%99s-sync-30-its-value-priceless

    I point this out mainly because I own a Ford Vehicle that has this system and did a little research on it. Basically it is cell phone type components such as Arm processors etc and costs Ford about $30 for the hardware. They sell it as a $395 option on a car (nice markup eh?). But...this is with no screen and no battery or power supply since it can run off of the car's electrical system. And I can only assume that Ford is getting pretty good economies of scale since it is the same exact system across so many of it's vehicles.

    Add in these components and yea, you are probably talking more like $100 to make it.
    ZDNet Gravatar
    cornpie
    26th Jul 2010
  • RE: How can India build a $35 tablet? More details emerge
    @john@...

    Anything outlandish should be questioned until proven true, not the other way around. Doesn't matter if it is MIT making the claim or IIT.

    If you look at the links showing it, $35 is the component cost and its a little hazy on whether they actually included all the parts needed (like a case?). That number doesn't include manufacturing, distribution, warranty, etc.

    Add those in and you are probably looking at around $50. Still, an interesting idea.
    ZDNet Gravatar
    SlithyTove
    26th Jul 2010
  • RE: How can India build a $35 tablet? More details emerge
    @john@... 11,800 lakh should be written 118 crore people. happy
    ZDNet Gravatar
    EvanT
    26th Jul 2010
  • Really come on. Intel the worst guys to ask.
    Go ask arm guys if it possible yes or no. Intel don't produce enough SOC chips to be worth the time of day for producing a cheep device. No where does it say the device is x86.
    ZDNet Gravatar
    oiaohm
    25th Jul 2010
  • RE: How can India build a $35 tablet? More details emerge
    @oiaohm
    doesn't not don't, cheep is what a baby chicken does cheap is your word.
    It doesn't want to allow me to comment further, so I will add to this one.
    Why don't we adopt a wait and see attitude? The concept of a super cheap computer is fascinating. If it doesn't come to pass, what difference does it make? I haven't lost anything, no use berating anyone over whether he did enough research or whatever. I'd take one.
    ZDNet Gravatar
    dhays
    26th Jul 2010
  • RE: How can India build a $35 tablet? More details emerge
    @Manas: You say IITs have a lot of innovative brains -- true to some extent but you see the kind of research done at the IITs can in no way justify the kind of breakthrough "Sakshat" is.

    Besides, it is just a matter of time before everyone stops taking the GOI's assertions seriously, the policy decisions are indeed being taken up by people not actually qualified to do so.
    ZDNet Gravatar
    ankurch.iitd
    25th Jul 2010
  • ZDNet Gravatar
    vik_wvu@...
    25th Jul 2010
  • How can India build a $35 tablet or is it...
    Why no US manufacturer could not make tablet at that price level? Or even close to this price level.
    ZDNet Gravatar
    Agnostic_OS
    25th Jul 2010
  • The powers which be say, "HELL NO!"
    You actually think microsoft is going to allow a device with this potential to happen? Not very likely. This device would make it quite obvious, to millions, that Linux is a superior operating system which can do anything that windows can do, Linux can just do it better and faster, not to mention that it is free. No. Large corporate interests will soon make the production and distribution of this device impossible! Both, software and hardware interests will work together to thwart this.
    ZDNet Gravatar
    Winston Court
    25th Jul 2010

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