Intel Says CPU Prices Irrelevant in Ultrabooks

An Intel executive recently called for an industry-wide effort to bring the prices of the devices down and indicated that it will not be up to the chipmaker to hit price points that resonate with consumers.

"More work needs to happen in the ecosystem. Even if we're giving the chips away for free, we couldn't hit the price point we want to hit if we don't work with the rest of the industry," vice president of sales and marketing and general manager for the Asia-Pacific region Navin Shenoy told Reuters in an interview.

That is a bold statement that may not sit too well with some of Intel's best customers, who are scrambling to get ultrabooks out for retail prices of less than $1000, which means that the actual cost to build those devices is somewhere in the $600 to $700 range.

According to Shenoy, about 40 percent of the consumer PC market may be occupied by ultrabooks by the end of next year, but this price-aggressive approach indicates that all Intel may be shooting for is a replacement of an existing market and not the opening of a new market - or a future market that builds on currently evolving trends, such as touch input models. As thin as ultrabooks are, they still follow the same general idea the original notebook, the 1984 Compaq LTE had: a keyboard and an attached screen. Touch never made sense on mainstream notebooks before and I would express some doubt that touch will suddenly make sense if notebooks are simply as thin as a Macbook Air, which the ultrabook trend aims to replicate.

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  • molo9000
    Apple is selling the 13" MB Air for $1300 with a CPU that has a "Recommended Channel Price" of $250.

    Is Intel trying to tell us that nobody can do it cheaper than Apple?

    ohimUnlike apple their competitors don`t use cheap slaves to manufacture their computer insides ... they actually have to pay those guys. Sheesh.

    lol.
    U can be 100% sure that in every computer u own there is something made by a Chinese worker, who's woefully underpaid by western standards.
    Doesn't mean it's slave labour though. The guys at Foxconn earn decent money by Chinese standards.
    10
  • soo-nah-mee
    ohimUnlike apple their competitors don`t use cheap slaves to manufacture their computer insides ... they actually have to pay those guys. Sheesh.
    Oh Foxconn workers get paid, after they sign a contract that implies a promise not to kill themselves.
    10
  • Other Comments
  • cyberkuberiah
    words of ease like when there's no competition .
    8
  • soo-nah-mee
    Quote:
    about 40 percent of the consumer PC market may be occupied by ultrabooks by the end of next year

    40 percent?!?!?
    Maybe if they sold for under $600 and became a replacement for low-end notebooks.
    I just don't see the need for a super-netbook in a world where tablets are becoming the media-consumption device of choice.
    6
  • cyberkuberiah
    ... sorry as i forgot to add this but what about the price of your sandy bridge ulv's being a nice big chunk of the 600-700 cost estimate ? add to that the thin requirement resulting in stringent designs , lets just see how they do it . being able to pull off another MB Air show is not something trivial especially at those selling price targets .
    0