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 Comments »

  1. Sameer Verma said,

    February 12, 2009 @ 12:27 pm

    Ah! I spot the “red” XO in the mix in the pic from the Globe article.

    http://cache.boston.com/resize/bonzai-fba/Globe_Photo/2009/02/10/1234326817_7607/539w.jpg

    I also see a OpenMoko Neo1973…whose desk is this, anyway?

    Sameer

  2. sj said,

    February 12, 2009 @ 4:10 pm

    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.

  3. Wayan @ OLPC News said,

    February 14, 2009 @ 6:06 pm

    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.

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