XO costs are dropping

XO costs are scheduled to drop soon; while we’re not yet in the $75-$100 range, raw materials costs have stopped going up and other economies are kicking in. The Globe has a fairly balanced piece on the update.

Meanwhile, feature-limited appliances such as modern bookreaders and many single-purpose phones continue to keep their prices up around $400, well above production costs; or subsidized by locking into hefty service plans.  Is that the model for the future?  Are netbooks moving the default price of a laptop from 1500 to 500, or shifting us to a culture of dropping costs over time?

3 thoughts on “XO costs are dropping

  1. How is this a price drop? OLPC has been adamant that XO’s are $187 or something around that for a while. Now Negroponte is saying that:

    “Now Negroponte is promising to cut the price of the XO by $24, to $180″

    Which means the XO is $204, not $187, or $188, or whatever price he and Chuck talked about.

  2. That’s Richard Smith’s and Chris Ball’s workspace… the Neo is CJB’s, and we have a few more red XO’s (from that one-time only stock; sorry, red lovers) being put to work around the office.

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