Ramp up delays for inexpensive Indian tablet, or infeasible plans?

An article in the New York Times (December 30,2012) describes delivery delays for the $40 tablet promised by Datawind, a Canadian company trying to grow electronics manufacturing in India. With fewer than 10,000 units shipped instead of the promised 100,000, the company is described as overwhelmed with the launch. Is the problem the sourcing of manufacturing in India which does not have an electronics supply chain that is competitive? Is it the low price point? Or should one expect delays in building infrastructure in India? Or was the entire idea infeasible to begin with?

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