It's a given in the high-tech world -- prices fall. They might fall slower or faster depending on the device, the components, and the product segment, but they generally drop as the devices move into the "commodity" category.
As industry watchers, we all know this trend, and any number of companies forecast this trend every year. Still, though, it's always a bit surprising to read about a low-cost computer selling for $25 in Europe.
Raspberry Pi Model A -- a credit card-sized device that's selling for $10 cheaper than the previous Mobel B -- is getting a bit of a buzz in the tech-geek space, and The New York Times is calling it one of the "the hottest and cheapest little computers in the world right now."
The new Raspberry Pi circuit board is a stripped-down version of the previous model, and comes with 256MB of RAM and one USB port. The idea behind it is to replace expensive computers used in classrooms or schools, and make it easy for hobbyists or teachers to plug in peripherals and test concepts. According to a statement from Premier Farnell, one of distributors selling the product:
The launch of Raspberry Pi last year was seen as a huge opportunity to fill the gap left by the demise of computer programming courses in education, and the increase in ready to use PCs, laptops and tablets. As such, demand for the Model A board is anticipated to be from those making industrial control modules, from roboticists, automation, and significantly, to use the Pi as a very cheap media centre.
Interestingly, one of the devices was sent to the upper atmosphere, 40,000 meters high, to collect weather info, videos, and photos, the NYT reported.
Downside of cheap
Yes, for computing geeks, this is a nifty thing and will give kids a cheap way to learn about a PC's inner workings. But I can't help but think there are other longer-term implications of having stripped-down computers being sold for $25, particularly as it affects convergence of other devices.
Already we see people using tablets and smartphones as on-the-go replacements for laptops, and while laptops are still more efficient workhorses, the overall PC market has been taking some punches. As Gartner's forecasting shows, device spending worldwide will be up this year compared to 2012, rising 6.3 percent year-on-year to $666 billion.
However, that estimate is significantly lower than the $706 billion the firm previously predicted. The drop "reflects a sharp reduction in the forecast growth in spending on PCs and tablets that is only partially offset by marginal increases in forecast growth in spending on mobile phones and printers," according to Gartner.
More specifically, as Richard Gordon, managing vice president at Gartner, notes:
The tablet market has seen greater price competition from android devices as well as smaller, low-priced devices in emerging markets. It is ultimately this shift toward relatively lower-priced tablets that lowers our average selling prices forecast for 2012 through 2016, which in turn is responsible for slowing device spending growth in general, and PC and tablet spending growth in particular.
Not that $25 computers used by kids and hobbyists will do much to shift that worldwide IT spending trend, but it could open the doors to many people globally who still have limited access to computing devices.
I wonder how popular the Pis are among young people. I reckon most sales will be from older geeks like myself. However I do hope there is significant uptake amonst younger people and that they are inspired to go on to do great things in future.
As Brian points out and some others of you noted, you're not likely going to wrap up the Raspberry Pi and give it as a birthday gift ( well, unless you have a tech-geek friend or 14-year-old who loves tinkering with this stuff). The point is how much value is being derived -- and could be derived in future iterations - and how are hw engineers rethinking their designs to match the value prop.
Cryptoman is right, some extent. Raspberry Pi folks are filling a gap for hobbyists and students, and yes you have to connect it to other peripherals. But even if you see it as embedded device or a super low-end computing platform, I think the idea here is two-fold: one is there is a niche for these types of devices, and two, that this long-awaited convergence between PC, tablet and phone is happening and will impact pricing and longer-term branding strategies. At the end of the day, the main questions are how many devices do people really need, and how many devices are they willing to buy?
It's good to see other fellow Arduino users :) You are absolutely right. Arduino and Rapberry Pi are in a similar league in terms of application domain in the broadests sense. Raspberry Pi has much more horsepower than an Arduino platform obviously.
To be honest, this device (way it appears in your link) has no concept built in called packaging. Only a hardware engineer or a geek might find this device attractive.
The configuration Raspberry Pi offers is very typical of an embedded hardware development platform. Most vandors sell similar type of platforms as 'evaluation boards/kits' and 'development kits'. Look here to see exactly what you get as a Raspberry Pi. This link actually has pictures of a clever lego based housing designed for Raspberry Pi. Even with this clever lego box, it's still a long was off from becoming a useable PC.
Big Lots was selling 4" tablets running android for $50 a couple of weeks ago. Seems to me that would make a fine platform for experiments, with a USB connection, because of the built-in display, battery, and power supply.
A new report shows that most of the worrisome issues that the supply chain industry has been dealing with for years are not new, but there are some new concerns that need answers. Here’s a look at what keeps supply chain professionals up at night.
When it comes to shipping supplies from China to Europe, trains might be the most cost-effective way companies have available to them. DHL is looking to jump on that bandwagon.
For many dealing with the enormous task of tracking,
reporting, and resolving issues associated with
potential counterfeit parts, there is a collective
hope that 2013 will bring clearer guidance on what
needs to be done by whom and when.
A necessary foundation for moving efficiently at real-time speed, supply chain analytics is still very much at the beginning stages of development at many companies.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
To save this item to your list of favorite EBN content so you can find it later in your Profile page, click the "Save It" button next to the item.
If you found this interesting or useful, please use the links to the services below to share it with other readers. You will need a free account with each service to share an item via that service.
Tweet This