Microsoft and Intel: threatened by the XO laptop?

By Microsoft Subnet on Mon, 11/26/07 - 9:28am.

The Wall Street Journal reports that after three years, the One Laptop Per Child project will likely fall short of its founder's goal to have 150 million users by the end of 2008. While the Journal does report some progress, notably an order from Uruguay for 100,000 machines and the first mass production run (that began in China this month) for 300,000 laptops (thousands of which are expected to be sold to U.S. consumers.) The problem, the story claims is that for-profit companies such as Microsoft and Intel felt threatened. And when such giants feel threatened, they do what they always do, they launch competition.

Intel now has the Classmate PC. Plus, last week, news reports circulated that the once Linux-only Asus Eee PC will offer Windows versions by December, thanks to a deal with Microsoft in which Microsoft dropped the OEM price of Vista. Meanwhile, the XO Laptop is offering an interesting deal for the holidays where U.S. consumers can buy two laptops for $399 where one XO laptop goes the child of your choice (like your own kid) and one is donated to a child in a developing country.

Competition is generally a good thing, but it is problematic when it comes to competing against a non-profit intended to assist developing countries. However, the low-cost, child friendly laptop cannot and should not be reserved only for those overseas. If Intel, Microsoft and the One Laptop Per Child project brings critical PC technology to economically disadvantaged people, does it matter so much where those people are located? Likewise, even if the technology is adopted by those with the means to pay more for a laptop for their child, does that matter? Simple answer, no. The benefits of a low-cost commodity laptop need not be restricted. Let these benefits be had by anyone.

More Microsoft Subnet blog posts
"Vista capable" lawsuit progresses
Asus Eee PC will offer Windows versions
De Unifying Unified Communications
IBM Communications Menu: Lunch Special is Microsoft
Microsoft researchers invent Harry Potter clock for tracking family members

Visit Microsoft Subnet for more news, blogs, opinion from around the Web.

Sign up for the bi-weekly Microsoft newsletter. (Click on News/Microsoft News Alert.)