Replacement warranty on Aakash makes it costlier by $14

If a report, which appeared in the Economic Times, is anything to go by then an ordinary replacement warranty, which comes included with the Aakash tablet, is actually making the tablet costlier by a good $14. It is being learnt that while the production costs alone of the tablet comes to roughly less than $35 (around Rs.1,750), adding a replacement warranty to it is taking the price all the way up to $49.98 per unit, which while still is the lowest around, makes it less desirable.The government, according to the above mentioned source had instructed the manufacturing company, Datawind that if any customer comes back with complaints or any defects in the tablet within the first year; the company shouldn’t repair it, but replace it. Considering the humid climate in India, the instances of defect would be high.

Visibly pleased students with the Aakash tablet at the launch

Reportedly, the National Mission on Education through Information and Communication Technology (NME-ICT), in a bid to instill transparency into the whole process handed over the task of testing the devices to the students of IIT-Rajasthan based on the design of the product. The institute managed to get the lowest possible production price for the ‘dream tablet’. These costs, as per the report included components, material and manufacturing costs. All this with taxes, levies, and charges like freight and insurance, servicing and documentation, among others take the price upto the above mentioned $49.98 per unit. 

More from News & Analysis

What is the US HIRE Bill and why is India’s $250-billion IT sector worried? Is the internet dead? What's this theory that OpenAI's Sam Altman says might be true?

So, while the Aakash tablet will reel under added costs owing to the replacement warranty, Ubislate, which is the retail version will come with only a 30-day replacement warranty.