The first function is an eBook reader and is the main priority. The second function is a standard laptop with a touchscreen keyboard, similar to how the iPhone works. This is very innovative, which might also be a problem. Because of the full touchscreen it could be far costlier than project (currently $75) if the displays are not available for cheap. The new project's display depends on the pricing of High Definition (HD) displays manufactured for portable DVD players.
It is definitely a possibility that if large numbers of the new laptops are not ordered, which would have provided economies of scale, the total cost will be much bigger than the estimated $75. OLPC thought they would have millions of laptops sold within a year, which is far from reality (currently around 600,000 units), so not reaching economies of scale is certainly reasonable.
Link: Forbes OLPC 2.0
