
Prices will be driven down by the combination of demand and declining component costs, said Gartner analyst Annette Jump. But those costs are not falling fast enough to make a US$100 laptop a viable proposition within three years, she noted.
Gartner's latest market figures show sales of laptops in Western Europe grew by 45 percent year-on-year for the second quarter of 2008.
The cheapest laptop in the market, according to a cost breakdown from Gartner, is the OLPC Device. “The OLPC-XO device is slightly cheaper than the other products because of lower processor and motherboard cost, and battery and packaging cost,” noted Jump’s report. Closely following the OLPC-XO in cost is Intel’s Classmate PC and the Asus Eee PC.
Nevertheless, OLPC remains adamant that its target of developing a US$100 laptop is on track. “OLPC is going to bring the cost down to a lot less than US$100 much sooner than three years,” a company spokesman told IT Week.