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Intel Says CPU Prices Irrelevant in Ultrabooks

By - Source: Reuters | B 36 comments

Intel sees pricing of ultrabooks as a major barrier for the adoption of this evolutionary notebook form factor.

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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Top Comments
  • 10 Hide
    soo-nah-mee , October 25, 2011 9:49 PM
    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 Hide
    molo9000 , October 25, 2011 9:43 PM
    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.
Other Comments
  • 8 Hide
    cyberkuberiah , October 25, 2011 9:18 PM
    words of ease like when there's no competition .
  • Display all 36 comments.
  • 6 Hide
    soo-nah-mee , October 25, 2011 9:19 PM
    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.
  • 0 Hide
    cyberkuberiah , October 25, 2011 9:21 PM
    ... 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 Hide
    jacobdrj , October 25, 2011 9:29 PM
    If CPU prices are irrelevant, does that mean they are giving them away for free when a computer is labeled an ultrabook? Weird...


    (More likely, Intel will have a sliding price that keeps Ultrabooks hovering at the target price).
  • 8 Hide
    soo-nah-mee , October 25, 2011 9:31 PM
    jacobdrjIf CPU prices are irrelevant, does that mean they are giving them away for free when a computer is labeled an ultrabook? Weird...(More likely, Intel will have a sliding price that keeps Ultrabooks hovering at the target price).
    No, they're saying that they won't be able to hit target prices even if they give them away for free.
  • -1 Hide
    busuan , October 25, 2011 9:34 PM
    Either get rid of the keyboard and make a pad, or make proper notebook, larger, solid yet light.
  • -1 Hide
    tmshdw , October 25, 2011 9:35 PM
    With Apple Air 11" at $999 so much for high-priced Apple HW rant.
    Same for the iPad. The Apple competitors can't meet Apple prices. Hmm....
  • 6 Hide
    Anonymous , October 25, 2011 9:40 PM
    That a great idea! Intel should set a good example for the rest industry by lower the prices of their cpus
  • 8 Hide
    Anonymous , October 25, 2011 9:40 PM
    Another pointless piece of tech, if ultrabooks want to compete with regular laptops they must have lower prices.
    Its everything about price.
    Who the hell wants a laptop less powerfull and more expensive just becasue its little thinner? Its just dumb
  • 2 Hide
    ohim , October 25, 2011 9:40 PM
    tmshdwWith Apple Air 11" at $999 so much for high-priced Apple HW rant.Same for the iPad. The Apple competitors can't meet Apple prices. Hmm....
    Unlike apple their competitors don`t use cheap slaves to manufacture their computer insides ... they actually have to pay those guys. Sheesh.
  • 10 Hide
    molo9000 , October 25, 2011 9:43 PM
    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 Hide
    soo-nah-mee , October 25, 2011 9:49 PM
    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.

  • 0 Hide
    SteelCity1981 , October 25, 2011 10:08 PM
    More like your Atom cpus are Irrelevant intel.
  • 1 Hide
    ohim , October 25, 2011 10:16 PM
    molo9000Apple 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?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.

    Chill i know that .. actually every giant in the world uses cheap labor ...was more like a joke but still ... something is not being payed much so that apple can still produce something "cheap" and get shit loads of profit after it anyway.
  • 3 Hide
    jacobdrj , October 25, 2011 10:25 PM
    Meh, they will get there...
  • 0 Hide
    GreaseMonkey_62 , October 25, 2011 10:25 PM
    What is Intel's deal? If they want an ultra book so bad want don't they figure out how to build one instead of harping on manufacturers. They want them so bad, (to sell more processors I assume) but they don't seem to be doing a whole lot to help.
  • 5 Hide
    cbfelterbush , October 25, 2011 10:42 PM
    Let us not forget that Intel already has an Ultrabook in that hands of many a user, the Macbook Air. Intel simply wants its other partners to up the anty.

    I think that there is a significant market for the Ultrabook. I would much rather have a higher quality PC based Macbook air with an i7 then any tablet device. Just my preferred method of interface.

    -CB
  • 1 Hide
    tuch92 , October 25, 2011 11:00 PM
    I'm pretty sure if they gave them away for free they could hit 1000 bucks pretty easy. Intel's trying so hard to push their new design, and while it's a good design, they need to help out somehow. They can't just expect manufacturers to do what they say because Intel told them to.
  • 7 Hide
    dalethepcman , October 25, 2011 11:16 PM
    tmshdwWith Apple Air 11" at $999 so much for high-priced Apple HW rant.Same for the iPad. The Apple competitors can't meet Apple prices. Hmm....


    Ok, I'll bite. Amazon Kindle Fire android tablet $199.99 - iPad $499.99
  • 3 Hide
    soo-nah-mee , October 25, 2011 11:22 PM
    dalethepcmanOk, I'll bite. Amazon Kindle Fire android tablet $199.99 - iPad $499.99
    Not a bad example.
    You do have to consider though that the Kindle Fire is going to be subsidized by ads and ebook purchases. I think I read that Amazon is going to lose money on the sale of the device itself.
    Also, the Fire is a far inferior device in terms of every spec.

    That said, I'd rather have 2 Kindle Fires and a steak dinner than an iPad. :) 
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