I hate to rain on what is claimed to be an advance in cheap computers for kids, but need to inject a little reality…
The news I read at http://news.cnet.com/8301-17938_105-20011536-1.html said among other things, it had 2 Gigabytes of RAM.
Let’s look at some real component numbers on 7/24/2010. If we check the spot price on DRAM at http://www.insye.com/DP/DRAMSpotPrice.aspx we see 2GB of ram is like $35. I also read the $35 claimed price is with no LCD display. The contract price on a 12″ lcd at http://www.insye.com/DP/TFTContractPrice.aspx is about $55. I checked a few SoC ARM processors at digikey.com (like http://search.digikey.com/scripts/DkSearch/dksus.dll?Detail&name=598-1137-ND), and the cheapest I saw was like $12 in 5000 Qty.
I don’t see any chance of a real price of $35. DRAM prices especially are pretty well know, and there is not a lot of room for deep discounts, see http://www.dramexchange.com/ for info on the DRAM market. Today’s average price is $2.31 for 1 gigabits, so you need 16 chips to make 2 Gigabytes, so $2.31 * 16 = $36.96. The price target is already blown just for DRAM.
I guess many of the 750 sites Google lists that picked up this story didn’t bother to check on reality, so I had to put in my $0.02.