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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.

  • cyberkuberiah
    words of ease like when there's no competition .
    Reply
  • soo-nah-mee
    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.
    Reply
  • 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 .
    Reply
  • jacobdrj
    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).
    Reply
  • soo-nah-mee
    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.
    Reply
  • busuan
    Either get rid of the keyboard and make a pad, or make proper notebook, larger, solid yet light.
    Reply
  • tmshdw
    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....
    Reply
  • That a great idea! Intel should set a good example for the rest industry by lower the prices of their cpus
    Reply
  • 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
    Reply
  • ohim
    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.
    Reply