South Asia

Why A $10 Laptop is Possible

The announcement of tha $10 laptop backed by the Indian government has led to both excitement and consternation. The Guardian calls it the “credit crunch” computer. But Atanu Dey, writing on his blog, trashes the idea: “I think it is a safe bet that the government officials who continue to make their $10 claims are clueless about technology and about the complexity of building a complex machine.”

But the people behind the laptop have “pedigree” – the backing of the Indian Institute of Science, and Indian Institute of Technology. Of course, nobody has seen the thing even after the laptop was announced today at the launch of the National Mission on Education, but it is expected to have 2GB of RAM and wireless connectivity. Its hard to see how a fully functional laptop could meet that price point. But here’s why Atanu Dey could be wrong.

First, all those arguing that it is not possible to build a laptop at that price are missing the point. Nobody said this would be a fully functional laptop. It does not need an Intel CPU or a Windows Operating System. As this blog points out, the laptop plan “challenges our thinking on system design.” Significant cost savings are possible simply through appropriate design.

There is an important message here. When we are addressing the developing-world market, we cannot afford to make the assumptions that we in the US don’t even recognize as assumptions any more.

Next, who said anything about a display? Much has been made of the fact that a typical LCD display costs at least $28. Clearly then, such a laptop must be vaporvare. Except, if you do away with the display. Most people presume a display is necessary, yet most of the functionality of a laptop can be provided by time-sharing a fixed display with multiple users.

And finally, the $10 value is a price point – not a cost point. It has been suggested that the laptop is probably being subsidized by the government. But the government doesn’t need to subsidize this when companies would be lining up to pay to be on this platform. Imagine a computer in the hands of 100 million Indians. Which corporation would pass up the opportunity to be on it? Commentators suggest that Microsoft’s Windows would probably be missing from this device, given it would increase cost. I think Microsoft would pay to be on this device, for fear of missing the boat.

Its clear that it is hard to build at $10 laptop that matches what most netbooks today offer, at cost. However, it is entirely possible to sell a computer at that price, that offers basic computing with a few tradeoffs and caveats.

No doubt, when Ratan Tata announced the 1-lakh car, people said it was not technically possible. But in building the Nano, Tata demonstrated that what we can build is limited not by technology but by our imagination and the assumptions that frame our world. This laptop may well be too ambitious or prove to be more expensive than announced. But critics should think far outside the boundaries of their frame of reference, before concluding it isn’t possible.