The biggest makeover that the $35 tablet underwent from the prototype to the final product stage is the price.
A year down the line, the making cost of the tablet stands at $37.98. To this if the transportation, warranty and other costs are added then the final cost of the tablet is close to $50 or Rs 2,276.
Though this still makes the tablet the cheapest computing device, the struggle to pack in as many features of the prototype into the final product as possible and yet keep the price down is quite apparent.
The prototype that Gadget Guru saw a year ago had a stylus alongwith the tablet. Right now, the stylus is not part of the deal. The prototype had a rear camera, with the Minister Mr Kapil Sibal saying back then that efforts will be made to see if a front camera can also be added within the $35 price point. Right now, for the first 100,000 units being released the rear camera is not there.
The manufacturer, UK based Datawind, does indicate that there was extra price to be paid for the "Made in India" tag. The company had to set up a manufacturing unit in Hyderabad especially to meet the Human Resource Development Ministry's demand to ensure that the tablet has a Made in India stamp on it. In an exclusive interview to Gadget Guru, Mr. Suneet Singh Tuli said, "It would have been cheaper to produce the tablet in China, in our existing facility. Manufacturing in India is not easy because of the complicated tax structure, inter-state sales taxes, VAT and other associated costs. We set up a unit in Hyderabad, Andhra Pradesh and also faced problems due to the Telengana agitations and so on. But it was important for this project to have the Made in India tag and despite hurdles we feel it's been worth it."
Despite the marginal increase in costs, the educational institutes will have to shell out less than Rs 1500 ($31) per tablet, as the government will subsidise 50% of the tablet costs. Eventually, the device will be available to the consumers and the cost of the device is likely to be around Rs 3000 (including all taxes).