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> The initial roll-out of 500 computers will cost US$369 each I was expecting a around a third of that number. How affordable is $369? (I'd appreciate anyone w
by forapurpose 8y ago
> The initial roll-out of 500 computers will cost US$369 each
I was expecting a around a third of that number. How affordable is $369? (I'd appreciate anyone who better knows economics or Cambodia chiming in.)
Wikipedia says per capita GDP using PPP (which I believe is the appropriate conversion for this purpose) is ~$4,300 per year, so the computer costs around a month of typical income (as distributed to everyone, not just to the workers).
At that level of income, people probably don't have much that's disposable; I would assume almost all goes to necessities. I could imagine a developer spending a month's income on a badly needed computer, but their market is people who haven't used one before. How many of them will invest in one?
Of course the person behind this project knows Cambodia far better than I do and must be well aware of the affordability issue. I wonder what their solution is. Maybe the target is a wealthier subset of the population and maybe there's a good reason; for example, maybe that level of wealth is required for reliable electricity.
- freddie_mercury 8y ago> Wikipedia says per capita GDP using PPP (which I believe is the appropriate conversion for this purpose) is ~$4,300 per year No, you shouldn't use PPP adjustments in this situation. The price for laptop is what it is. And the only money they have to buy it is the money they have (without any adjustment). So the laptop is more like 3 months of salary. For a typical US programmer making $120,000 a year that's (kinda sorta) equivalent to buying a $30,000 car.
- julienfr112 8y agoComputer used to cost months of salaries. In around 1995, in France, you could buy a 10.000 Fr computer whereas minimum wage was around 3.000 Fr per month. Still, my parents made the financial effort to buy one.
- oblio 8y agoYes, but your parents probably had a house, a car, good healthcare access, etc. Edit: Almost forgot - and they didn't have to take care of their elders, financially.
- forapurpose 8y ago> No, you shouldn't use PPP adjustments in this situation. The price for laptop is what it is. And the only money they have to buy it is the money they have (without any adjustment). Yes, you're right. My error, though much too late to edit the GP. > So the laptop is more like 3 months of salary. For a typical US programmer making $120,000 a year that's (kinda sorta) equivalent to buying a $30,000 car. The parent does say "kinda sorta", but I want to emphasize: For the US developer that $30K isn't needed to for food, shelter, and health care. The impact isn't nearly the same.
- tim333 8y agoThe income distribution is very uneven. It might appeal to the more well off but not extra wealthy. It's probably to much for your average Cambodian, and the extra wealthy probably get real macs from Singapore.