OLPC, which is a nonprofit organization, competes in the global education market with Intel's Classmate PC. OLPC has lost orders to Intel as it recovers from restructuring and increases in the laptop's price and manufacturing costs.

An incremental update to the XO laptop is being prepared by OLPC that will allow the laptop to be faster and store more data. Code-named XO-1 Gen 1.5, the laptop may include a faster processor, increased flash storage, a new wireless chip and rubber bumpers for improved screen protection. The target ship date for the updated laptop is the first quarter of 2009, the organization has said.

OLPC has already announced XO-2, the next-generation laptop that will include a software-based, touch-sensitive keyboard and two touchscreen displays. That laptop is expected to ship in 2010.