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Although the project seemed threatened in early 2006 from all sides these were minor compared to the problems to come. The biggest concern at the time was lack of an LCD panel manufacturer, but Negroponte and CTO Mary Lou Jepsen managed to charm another eccentric Taiwanese billionaire. Wen-Long Hsu—founder of southern Taiwan’s Chi-Mei conglomerate — is the owner of the world's largest collection of Stradivarius violins, which he played one for them when they visited to sign contracts.

By the fall, everything was working great in prototype form. Quanta agreed to run its first batch, and even agreed to run a suspend-resume hibernation test cycle 1000 times on each test machine. Normally, test units were give this cycle four times, so it was a particularly unusual request. Then, at 3am on the first day of mass production, Jepsen got a call. Everything was shut down; the laptops were going to sleep and not waking up.

"All hell was breaking loose." She hauled ass to the manufacturing lab with a few other guys and started pumping the caffeine.

Eventually a Quanta guy named Gary Chang and an OLPC guy named Richard Smith ("He's from Arkansas, looks like surfer dude") solved the problem. "We were calling it the second shot from the grassy knoll," says Jepsen. Apparently, as the system was shutting down, electromagnetic noise was corrupting data, screwing up the instructions that told the thing how to wake up again.

At around the same time, the maker of the wireless chips, Marvell, decided to update the firmware for the radio, and they started to crash. "We had four people in four time zones working on that problem," said networking engineer Michail Bletsas. "Mark Foster in Taipei, me in Boston, someone in India, and someone in Santa Clara. We had to program a workaround on the fly: It's in the radio, something you're not supposed to touch under normal consequences."

"A lot of those stories weren't told," says Jepsen. "We weren't hiding it, everybody knew, but we weren't broadcasting it. We figured it all out, and shipped a million of them."

Threat Level Rising
By late 2006, Intel had finalized its specs for the Classmate PC. Though it would cost $30 to $40 more than the XO—the "$100 laptop" in the end cost $188—the Classmate had a faster processor, Intel brand equity and the option of Windows XP as the OS. (Bulk buyers could also opt for Linux.) It was seductive in that it wasn't the revolutionary product that the XO was, but something more familiar, and in line with what ministers of education might have been considering already. What's more, it was a reference design that regional companies could license and customize to fit their needs. And, perhaps, countries rife with pirated software infrastructure had plenty of free programs to run from the black market.

As it began pilot program, Intel's strategy was seen as more traditional too: Laptops could go to teachers, or loaned to students. It did not enforce Negroponte's logical but strict mandate, that the laptops be given to the children, and that they should only be deployed when there are enough to go around.
In the middle of 2007, Intel and OLPC entered into a partnership that was probably more of a hindrance to each other's initiatives than any sort of help. From the start, the deal was vague, more of a mutual appreciation society than a true strategic alliance. Six months later, it had dissolved in acrimony. OLPC accused Intel of pitching Classmate to would-be XO customers; Intel griped that OLPC wouldn't stop asking that the Classmate be discontinued in favor of the XO.

Meanwhile, Intel's more profit-minded operatives were hanging out in Taiwan, spinning the baby laptop idea to one of Quanta's arch competitors, a little known company called Asus.
On June 8, 2007, while both the XO and the Classmate were still deep in pilot testing, Asus introduced the Eee PC, a $400 mini-notebook running a warm-n-fuzzy flavor of Linux. Not only did it resemble the Classmate more than a little, it was unveiled at a press conference hosted by none other than Intel. It would be ready for sale worldwide by that winter, and when it did become available, boy did it sell like hotcakes.

Sales Figures, Sales Facts
"Selling like hotcakes" is an expression that doesn't mean anything in particular. In many cases, "selling a million" doesn't really mean anything specific either. I've heard OLPC people say they've hit the million mark, but in terms of actual shipments, it's not true.

Due to issues that have nothing to do with hardware—and largely to do with Negroponte's greater mission of educating the world's poor—the XO spent most of 2007 in beta testing. In early November, OLPC launched the "Give 1 Get 1" $400 charitable promotion for US buyers, but the first real bonafide XO deployment happened in Uruguay in on December 1. Confirmed orders might have topped a million at this point, but the number of existing XOs, both sold in the US and deployed en masse to schoolchildren in Peru and Uruguay, hovers around 500,000.

Ask Intel how many Classmate PCs are out in the wild, and you get a vague stat, somewhere in the "hundreds of thousands." Intel, too, promises large numbers to come. Portugal will be buying 500,000 of them for the coming school year, for instance.

The Eee PC, though, is already nearing 2 million sold, having hit 1.7 million in the first half of 2008. It is on target to reach a promised goal of 5 million by the end of the year. (By contrast, OLPC will most assuredly not reach 1 million by the end of 2008.)

The success of the mini notebooks has largely been due to price (even expensive ones rarely touch $600) and their intentionally internet-friendly design (you're not going to load up Photoshop CS3, but browsing and email checking work fine). They are also boosted by the negativity surrounding Windows Vista: By running Linux or Windows XP, they present a desirable alternative to the bulkier, more expensive, resource-heavy machines required to run Microsoft's latest OS.

In the wake of the Eee's success, over 40 mini notebooks have hit the market over night. The top four best-selling notebooks on Amazon fall into this catetgory.

At this point, even if the millions of third-world students eventually get laptops, it's unlikely that the XO will be the one they receive. Still, the past two years are definitive proof that Negroponte can take credit for the birth of an entirely new kind of PC.

And Negroponte does claim credit for the Eee PC's success. In fact, he says it's why he introduced the next version of the XO laptop—a radical two-touchscreen device aimed at a $75 pricetag—so early.

Encore?
I asked him why, with the first XO so clearly in its early stages of shipment, would he show off the XO-2. Sure, he doesn't have customers at Best Buy who may hold off because they know what's coming, but it seemed to take away from the momentum of the original device, not to mention confirming some of its criticisms (underpowered, cramped keyboard, etc.).

"When we announce something now that will be in play two years from now, it's partly to give the manufacturers something to start copying now," he says, elaborating, "If you go back two years and you look at the press, [the XO] was dismissed, it was not possible. Then came the Classmate, then Asus. If I underestimated anything, it was how fast people would [copy] it, even if they didn't get down to the same price or didn't have the same features. It was a movement—a hardware trend—that happened because of OLPC."

He also hopes that the announcement of the XO-2 concept, one that only exists in pictures, will stimulate small developers who work on components. Jepsen's new company Pixel Qi will focus on the next-generation of LCD touchscreen, one that can be made as cheaply as current screens today, but have capacitive touch built right into the active matrix, making it thinner than an iPhone screen. Others who saw the XO-2 renderings have already begun pitching solutions to the group.

Not a Manager
If there's one criticism made against Negroponte that's indisputable, is that he changes his tune.

In the beginning, Negroponte repeatedly affirmed that the XO was to run "Linux or some other open source operating system." After a long struggle that could easily be the subject of another series, the XO has recently been made capable of booting both its own Linux OS with Sugar interface, as well as Windows XP. (Critics say that Negroponte never allowed OLPC's Linux OS to mature so that it could stand up to pressure from the Windows advocates.)

Likewise, he was adamant at the beginning that his laptop be the only one shipped to these third-world educational programs where there isn't so much a "market" as there is a case for charity. He says now that if there is a true market—schools and families with the means and desire to buy their own laptops—others can serve it.

Inside OLPC, the leader's mercurial nature and changing priorities proved too much for the talent he had assembled. On the software side, Walter Bender and Ivan Krstic left after open disagreements with Negroponte—mostly pertaining to the adoption of Windows, but also to the overall goals of the program. Jepsen left in January 2008 in what she says was an amicable split, though other hardware experts including laptop maestro Mark Foster had abandoned ship earlier, possibly because they couldn't get along with Jepsen. Most people seem rankled by the credit that Yves Behar took as the "OLPC designer," most notably in a Wired article that would seem laughable to anyone who read Part 1 and Part 2 of this series.

When talking to staff members, there is a sense that no one really got along, and that the religion that Negroponte had instilled in his lieutenants, enough to get them to hang together for two years, has dissipated. The rocky Intel alliance and the move toward Windows were just the final disillusionments. Negroponte spoke the painfully obvious to BusinessWeek last March: "I am not a CEO. Management, administration and details are my weaknesses."

Pulling an Obi-Wan
Still, Negroponte and whoever has stuck by him charge onward. He said, to us and to others, "OLPC is not a laptop company." Now that the mini-notebook movement is in full swing, perhaps the focus should veer from hardware development. Why then stay in the hardware game? Perhaps it's telling that, on the OLPC website's own "Progress" page, nothing is mentioned after December 2007.

Bletsas—who remains hard at work on OLPC today—says that if OLPC does not stay in business, the laptop makers who followed the XO design cues will start doing what they do best: bumping the specs, upping the prices and keeping product too expensive for the foundation to use it in its educational mission. "Unless we keep designing, showing the world it's doable, I don't think they will follow in that path," he says. "If we stop at this stage, they are not going to come down enough for us to use their machines. We have to push them at least one step further."

Want more on OLPC's secret origins? Jump back to the earlier sections:
Part 1 - Genius, Hubris and the Birth of the Netbook
Part 2 - US and Taiwan's Hardware Lovechild

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Let's be clear: If you hate BlackBerry phones, you will still intensely dislike the Bold. As many coats of polish as RIM has thickly layered on the Bold, it is still a BlackBerry, with all of its suit-and-tie DNA fully intact. Fundamentally, it works and plays just like every other BlackBerry, but with a load of small-to-medium improvements, updates and tweaks that add up to a richer, more refined phone that also looks far better than the rest while doing its thing.

Screen
Yes, the Bold's 480x320 screen is dazzling enough to warrant its own section dedicated simply to praising it. Incredibly rich and contrast-y with stunning pixel density, it's so nice you want to touch it. I actually tried to once or twice to hit okay on a dialog box, forgetting that it wasn't the touchy kind of screen. It almost makes reading the plain text of an email depressing, knowing you could be looking at a gorgeous video instead.

Keyboard
A BlackBerry lives and dies by its keyboard. When the iPhone 3G was still a perfect device in the minds of fanboys before it launched, RIM diehards countered reckless banter about the death of the BlackBerry per the iPhone's Exchange support by pointing to the keyboard. After you get used to the slight angle shift in the Bold's keys, they're fantastic, like a delicately balanced wine, with a perfect blend of springy, punchy and spongy. The glossy navigation keys are overly large for reasons I cannot quite divine. The backlighting is beautiful.

Body
It's hands-down the best looking phone RIM has put out, not to mention one of the most attractive pieces of kit on the whole market, even if the clean chrome on black is borrowed from another phone (and we're not saying it is). It looks like an incredibly modern business device, what you imagine people with more important jobs than you would carry to conduct business that's more important than yours, while talking to their accountant about how much fatter their bank account is than yours. It exudes power. Welcome to 2008, RIM design department.

It's larger and wider than the Curve, but it still feels fine in my hands, which aren't giant-sized by any means. The faux-leather backing, however, is absolutely puzzling, like RIM tried to add a touch of class in the same way Donald Trump's hairdo gives him a touch of handsome. In other words, it's fake as crap and feels tacky. Insignificant, really, but it's actually the thing I hate most about this phone. Nonetheless, it feels rock solid.

Connections
It has everything you want: 3G, GPS and Wi-Fi. Despite earlier reports that it suffered from similar 3G problems as the iPhone 3G, I found that it was more consistent and reliable with its 3G connection. It wasn't uncommon to grab four bars of signal where the iPhone only saw one. (I realize bars are not standardized or totally accurate, but the disparity between the two was often significant, two or more bars.) In drive-testing, handoff went smoothly. GPS was slower than I would've liked, more often than not taking up to a minute to get a lock, and the maps app could be snappier (and prettier) than it is, but it'll do. At least on AT&T it will immediately have a decent navigator app, unlike the iPhone.

Battery
It's a champ. Despite lots of 3G browsing, email and other everyday app use, a half charge right out of the box got me through an eight-hour day with no problem. Expect more detailed battery test update later, but all indications are that this thing will last you throughout the day with no problems at all. Way to go, RIM.

Browser
Okay, so there was some controversy about how quickly its browser renders compared to the iPhone. In my tests over Wi-Fi—and believe me, I triple checked to make sure it was on Wi-Fi—it was either tied with, or just behind the iPhone, like the dude who lost to Michael Phelps by a finger tip. The speed difference really is trivial.

It's the best BlackBerry browser ever (this phone is a lot of "best BlackBerry ______ ever"), and one of the most usable mobile browsers around. In other words, it's actually usable. Not a miracle. The trackball isn't the most elegant way to navigate pages—largely because of the zoom metaphor—but it gets the job done, and the vast majority of the time, the Bold shows you pages the way they're supposed to be. It definitely sets a standard for what mobile browsers should do at a minimum, and it's fine for light surfing.

Email
What's a BlackBerry without email? Perhaps wisely, RIM chose to mostly not fix what ain't broken, adding small but significant tweaks like the ability to see pictures in message, full HTML and attachment viewing. Otherwise, it's basically the same experience you're used to. The higher res screen makes the text pop more and adds clarity, but it's not any prettier, which somewhat stands out against the rest of the overhauled UI.

Media
The Roxio-powered desktop Media Manager still sucks total balls—can you please get a decent integrated manager, RIM? And the music/video setup is essentially unchanged—same menu system and organization—but it has a cleaner, less tacky skin on top that makes it look like it's greatly improved, even though it isn't.

But! Watching videos on this thing is a-maz-ing. The sample Speed Racer trailer was so gorgeous and yummy, I almost wanted to watch that 80-car-pile-up of a movie. Almost. The external speaker is surprisingly good, too, with richer sound than the iPhone's. Still, this is one of the areas of the phone that needs work—the video quality nearly woos me into giving it a pass—but I can't emphasize enough how much it needs a decent media manager.

OS & UI
RIM has re-skinned the entire operating interface, shifting from pixel-y, realish bitmaps to slick, almost Tron-like high-res icons that have a neon pseudo-science fiction modernist feel to them. One issue: It's no longer immediately apparent what each icon does, so expect to hover initially. (With Precision Zen, the theme with splashes of color, it's easier to discern what icons represent.) I like them, but it's really an issue of personal taste—still, future skins will benefit from being able to go high-res.

All of the top-level menus have been cleaned up as well, with crisp white text on a black background. It feels nice, and goes with the look of the handset itself, conveying the sense of it being modern and powerful. Unfortunately, when you go into applications themselves—mail, contacts, etc.—or deep into settings, you feel like you've entered a time warp three years into the past. It's like eating a tuna sandwich after a piece of sashimi—the tuna sandwich alone, uncontextualized, is fine, but next to a pure, clean slice of maguro it looks like crap.

Startup on this device has been exceptionally slow—I initially thought my unit was busted or something (maybe it is), though I suppose BBs are always damn sluggish on cold starts. For the for first minute or so after booting, the OS kind of chugs as well, but after clearing the pipes, I guess, it runs totally smoothly, as it should with its speedy 624MHz processor.

Still, overall, it's the same BlackBerry OS as before, just prettier and running on snappy hardware. If you're used to a BlackBerry, you won't have any problems getting around. If you're not, well, it's one of the easier mobile OSes to learn and deal with, everything is more or less up front, and on top, at least, it's pretty.

Conclusion
This is RIM's best phone ever. Does that mean it's the phone for you? If you're a BlackBerry fanatic, yes—it really is the phone you've been waiting for, if you're not hoping RIM radically changed the recipe. Because they didn't. It's cleaner and brighter, but it's not an overhaul by any means. It's a more powerful and beautiful distillation of the same experience.

For other people who were eyeing it as the time to switch to BlackBerry, the issue is less straightforward. As I said in the intro, it's coming into a complicated world, where it has more consumer crossover appeal than a flagship RIM device—currently, the 8800—ever has before. (No doubt, even more people are looking at it in light of the iPhone 3G's problems, either suit-and-ties who were considering the jump, or people looking for their first high-end smartphone, though more of the former.) At its heart, this thing is a corporate workhouse. It will play movies, music, browse the internet and all of the things consumers usually want—and do it well—but it is coming from a different mindset than the iPhone, something to keep in mind if you're torn between these two phones.

AT&T has not set a price (or a date for that matter) but we're hearing that it will not touch the $199 mark when it launches in September. Depending on how aggressively RIM and AT&T want to push it, it looks like it could go as low as $249, but $299 seems more likely, another factor that makes it more suited to corporate than consumer. Still, whichever side you're on, this is a fantastic phone that perhaps pushes the BlackBerry experience to its peak. The flipside of that is that with its next generation of phones, RIM might have to radically reinvent it to stay ahead of the game.

Huge, huge thanks to Wireless Imports for providing us with the hardware!