Ultrabook vendors may have difficulty lowering price to US$799

Though Intel has been actively promoting second-generation ultrabooks, it is still difficult for vendors to launch such models at prices below US$799 as targeted by Intel in third-quarter 2012 because of the high production cost, according to sources from Taiwan's notebook supply chain.

Intel has recommended cost-decreasing solutions and is optimistic about reduction in prices for second-generation ultrabooks, the sources said. However, most vendors or ODM makers have not yet adopted such solutions because costs of key components, including processors, SSDs, screen panels, chassis and batteries, have not dropped and are expected to stay at similar levels in the second half of 2012, the sources indicated.

Based on the current costs of components, retail prices for second-generation ultrabooks will exceed US$859 and mainstream models will range between US$999-1,299, the sources analyzed.

The launch of Windows 8 in October 2012 is expected to stimulate demand for ultrabooks in the fourth quarter, but additional cost due to touch panels will push up retail prices for Windows 8 ultrabooks, the sources indicated.

Intel on June 26 invited nine vendors, Hewlett-Packard (HP), Dell, Acer, Asustek Computer, Toshiba, Gigabyte Technology, Lenovo, Samsung Electronics and Sony, to jointly announce marketing plans for second-generation ultrabooks in Taiwan. There will be 110 models of ultrabooks to be launched globally in the second half of 2012, including models priced at US$699, according to Intel Taiwan country manager Jason Chen.

Source: Companies, compiled by Digitimes, June 2012

Ultrabook launch in Taiwan Photo: Monica Chen, Digitimes, June 2012

Source: DigiTimes