2 ms·
You're subsidizing the ones that get distributed at low or no cost in other countries.
by chiph 13y ago
You're subsidizing the ones that get distributed at low or no cost in other countries.
- venomsnake 13y agoOr you are subsidizing the new yacht of Wallmart's CEO.
- chiph 13y agoWhile I don't shop at Walmart (I feel that Costco treats their people far better), I do have to admit that having access to Walmarts supply chain could be a net positive for OLPC. General order of business for Walmart is to demand ever lower prices of their suppliers. Since OLPC doesn't actually make the devices themselves (I think a Chinese ODM does it), and the volume is low, OLPC doesn't have the ability to apply much pressure to the suppliers. However, distribution via Walmart could get the volume up to where they're now buying components in the "500k-1m" column, with significant cost savings. And the OLPC people could get a Walmart junior VP on the phone and he'd apply some pressure to the suppliers. So far as subsidizing a new yacht -- sure, Walmart is going to take a cut. But I expect it's a pretty small one, as they get a lot of positive publicity for supporting the OLPC project. So for them, much of the carrying cost of this device is a marketing/publicity expense, not like they were selling a refrigerator or something.