Aakash tablet’s cost is below 35$ (Apprx INR 1750), But government has asked for replacement warranty and not repair warranty. Datawind has disclosed that this dimension and taxes has added in the final cost of the product that is around 50$. Government will buy the tablets at this rate for 1 lakh pieces (1,00,000).
Mr Tuli, CEO of Datawind said if and when government orders 1 million or more pieces of Aakash, he may deliver it at around 35$. Points to remember is in first batch government has ordered only 1,00,000 Aakash tablets. Once it is tested in market they may order million pieces. In that scenario government will not have to pay any subsidy.