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  1. #21  
    Quote Originally Posted by chadman View Post
    This is the first thing that came to my mind. Granted, I think the Foleo is a bit overpriced, but it is a first gen product and they need to recoup some money without totally relying on their Treo business.

    The OLPC is meant as a practical "give-away" do developing countries.

    Heck, the "cost" of a Firewire cable is $1.29, but a consumer gets charged $30...
    A charity is not putting the OLPC together. Its Quanta, a giant maker of laptops, and they are definitely making a profit margin. The price of the OLPC (around $175) should tell you about the margin Palm expects to make on this device. Even at $499 it must be at least $200.

    Surur
  2. #22  
    Quote Originally Posted by surur View Post
    A charity is not putting the OLPC together. Its Quanta, a giant maker of laptops, and they are definitely making a profit margin. The price of the OLPC (around $175) should tell you about the margin Palm expects to make on this device. Even at $499 it must be at least $200.

    Surur
    As I said before, I believe most of the parts makers for the OLPC which aren't giving it to them for cost are giving them VERY low profit margins, around $3. Like I said, try getting that sort of profit margins from parts makers if you're not involved with some cause and watch as they laugh in your face.
  3. #23  
    Quote Originally Posted by jhoff80 View Post
    As I said before, I believe most of the parts makers for the OLPC which aren't giving it to them for cost are giving them VERY low profit margins, around $3. Like I said, try getting that sort of profit margins from parts makers if you're not involved with some cause and watch as they laugh in your face.
    Thats not realistic. Why would you give away millions of components at cost? What would your share holders say about that? This is not a back yard project - they aim to give away hundreds of millions of OLPC's - All the people involved except the final customers have to make a profit, else it will not be sustainable.

    Surur
  4. #24  
    Well I don't care how realistic or not you think it is, its whats happening. Companies are giving parts for very near cost, Quanta themselves are making $3 per unit which is a huge drop from the types of profits they get making laptops for Dell or HP, and the same goes for many of the individual chip makers/etc.
  5. #25  
    Quote Originally Posted by jhoff80 View Post
    Well I don't care how realistic or not you think it is, its whats happening. Companies are giving parts for very near cost, Quanta themselves are making $3 per unit which is a huge drop from the types of profits they get making laptops for Dell or HP, and the same goes for many of the individual chip makers/etc.
    You need to do some more research then. Article like this one indicate Quanta plans to market their own XO laptop, based on OLPC technology, for $200 each later this year. I suspect they plan to make just a little more profit than 1.5% per unit sale, don't you? Jeff Hawkins should be mortified at news like this - and I would be interested in buying an XO computer, especially seeing as how it has a lot more innovation than the Palm Foleo.
  6. #26  
    People like to believe funny things. I guess they have not heard of the tender process, and making up for low margins with huge volume, like the OLPC.

    Surur
  7. #27  
    Quote Originally Posted by surur View Post
    People like to believe funny things. I guess they have not heard of the tender process, and making up for low margins with huge volume, like the OLPC.

    Surur
    So you're saying they have low margins or not?
  8. #28  
    Quote Originally Posted by samkim View Post
    So you're saying they have low margins or not?
    Quanta is going for low margins, high volume, and Palm (clearly) quite the opposite. If Quanta ships 200 million OLPC's at $3 profit that $600 million in profit. I am saying their margins are not low out of the goodness of their hearts, but because they were in competition with the other OEM's.

    Surur
  9. #29  
    Isn't that what jhoff is saying?
  10. #30  
    Quote Originally Posted by samkim View Post
    Isn't that what jhoff is saying?
    Not quite. He said they were charging less out of charity, vs self-interest. This is not realistic.

    Surur
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