Right. So you're saying that from their perspective even this kind of tablet is a big deal for them. I can understand that. The good news is that the hardware price for these kind of devices is dropping fast (at least by 30% per year), so in 2-3 years they should be getting pretty decent tablet for that price. If you look at what $500-$1000 PC's and the Internet have done for the more advanced countries, these very affordable tablets should do the same for the whole of India and other Asian or African countries.

I totally agree. Moore's Law equivalents mean that this technology is becoming more affordable very quickly.

With huge consequences for access to information and high quality teaching / learning materials

There are some 950M cell phones in India. I've always wondered how the poorest of the poor actually afford these things. It isn't unusual to see someone who's leading an obviously poor life with a cellphone.

Used cellphones are thrown away; the poor get them for free. Incoming calls are free. You can buy recharge cards of Rs.5, which, I think, is within the reach of the poor

Interesting. I've also noticed that until about 5 years ago or so most people in India were using the Nokia models which had been phased out in US. My guess is that Nokia kept the factories running and sold the older models for a very low price to increase penetration, brand-awareness etc.

Perhaps this is a distribution model which would work. Sell high-end tablets to rich, status-conscious folks first (there are plenty of those in India now). Then as prices start coming down people of humbler means will want them and be able to afford them.

That is correct. Also,the meme about Nokia phones being indestructible is not without basis, so that helps too

The target in this case must be the other 58.4 percent, then.

Not everything has to wait for the poorest to catch up.

The tablet isn't aimed at street beggers. It's aimed at schools to try and reduce the cost of textbooks - and ultimately teachers.

But since the Indian govt is involved it will end up being a massive sink of corruption, favours to suppliers and a total lack of investment in the resources, training and infrastructure needed to actually make it useful - pretty much like any govt "computers in schools"project in any country for the last 30 years

Since you can buy no-name chinese android 2.2 tablets for <$70 retail subsidizing this to $40 isn't really such a big deal