May 19 2008 / by Alvis Brigis / In association with Future Blogger.net
Category: Economics Year: 2009 Rating: 9 Hot
With the rapid rise of the iPhone and Microsoft’s announcement that it will back the One Laptop per Child initiative, a massive battle for the African computer market may be shaping up sooner than expected.
The AP reports a new deal between Apple and cell provider Orange that will bring the iPhone to “Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland and African markets later this year.”
At the same time, Microsoft has finally agreed to provide Windows to the now promising OLPC initiative after years of ridiculing the then far-fetched project.
Though the iPhone presently costs more than a OLPC PC, $399 vs. $100, that price is due to sharply drop (perhaps to the $100 -$200 range) with the imminent release of the new 3G iPhone, which itself may be priced at just $199 if rumors about a hefty AT&T subsidy prove correct.
While lack of comm infrastructure and politics will certainly remain the primary barriers to diffusion, it looks as though these low-cost yet high-value products, driven by large companies getting accustomed to rapidly exploding markets in which first-mover advantage is critical, may catalyze a perfect storm for connectivity in under-developed nations, most notably African countries. (cont.)