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Saturday, October 13, 2007

Quanta's Profit on OLPC XO is only $3 per machine

According to an, again old, article dated May 07, 2007 in Taipei Times, Quanta earns only USD3 per OLPC machine it makes for the foundation. The article, Analysis: Analysts voice concerns on low-cost PC bandwagon, discusses the feasibility of low-cost computers.

It then discusses Quanta's production of the OLPC's -

"For Quanta Computer Inc (廣達電腦), the world's largest contract notebook computer maker, the One Laptop per Child (OLPC) project will only strengthen its market leadership.

Quanta announced on April 26 a delay in shipments until the fourth quarter from the third quarter, caused by changes to components, including a faster central processing unit and a larger hard drive and memory, it said.

The OLPCs will cost US$175 per machine, with Quanta taking a profit of US$3 per machine, Nicholas Negroponte, the former director of the Massachusetts Institute of Technology Media Lab who now heads the nonprofit OLPC, said last month.

The profit is less than what Quanta receives from its mainstream PC business, but it would still be a lucrative unit if the first-year shipments reached 10 million as projected."

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