Remember that $35 Android tablet from India we reported on last year? The latest in a long line of Indian vaporware, praised by Nicholas Negroponte, it was supposed to receive educational subsidies and be made available to students—though reports surfaced that it was actually a Chinese Android tablet and not actually a home-grown device at all.
Now India’s Economic Times has a report saying that the vendor who was to provide a guarantee bond to back the device’s production (in accordance with Indian legal requirements) has backed out of a $13 million commitment.
According to a government source, the laptop components alone were costing the vendor Rs 5700 [US$124.82] without taking into account the import duties and logistics. The government was however planning to sell it at Rs 1500 [US$32.85] per piece. "Disagreement on the financial cost with the vendor led to the tender cancellation," said a source close to the project.
Say what you will about the OLPC’s price for the XO-1 doubling over its original plan; at least it manages to make back its investment in its devices!
So it appears that the too good to be true $35 tablet was, indeed, too good to be true. Better luck next time, India.
(Found via Technologizer, in our “Around the Web” box.)