Intel’s Ultrabook Can’t Outprice Apple’s Macbook Air! Manufacturers

By on August 4, 2011

Intel has been working for introducing ultra low voltage energy efficient processors for many years, to fit them in next generation notebooks and laptops. In this regard, Intel brought a new breed of laptops in the market called “Ultrabooks” and an ASUS model was the first device that was equipped with Intel’s new ULV processors having a very close resemblance to Apple’s Macbook Airs. Intel was quite sure that these ultra-thin and ultra-light laptops would snatch 40% share of the consumers laptop market by the end of the next year 22012.


On the other hand,  a latest report by DigiTimes reveals, the manufacturers are   facing troubles for pricing of their new ultrabook machines as compared to Apple’s MacBook Air, leading to very dubious prospects for getting market success.

The sources pointed out that the new MacBook Airs are priced at about US$999-1,599 with rather strong demand in the US; however, designing an ultrabook based on Intel’s technical suggestions will still be unable to reduce the machine’s price level to lower than the MacBook Air’s unless Intel is willing to reduce its prices, which already account for one-third of the total cost.

Macrumors comments on this interesting position;

Intel’s effort to match the MacBook Air’s thin profile has seen the company push forward its new platform with more components integrated directly onto the machines’ circuit boards and using non user-replaceable batteries, mirroring Apple’s own steps. Those requirements have, however, pushed up the cost of those components beyond that of the modular ones typically used in PCs, resulting in Ultrabook pricing coming in at the same levels as Apple’s MacBook Air.

Softpedia registers its verdict on the said issue  in the following words;

Add to that the high prices of solid state drives and ULV processors (Intel’s hardware alone accounts for a third of the $1000 price) and it becomes pretty clear that Ultrabooks will find it hard to compete with the $999 to $1,599 priced MacBook Air.

As far as notebook makers are concerned, the only solution to deliver sub $1000 Ultrabooks could be for Intel to reduce the price of its components (one could actually interpret all these complaints as a way to force Intel to do just that).

We think only low priced ”Ultrabooks” can compete Apple’s Macbook Airs in the laptop market and it is now up to Intel to decide how much cushion it can offer to the manufacturers in lowering the prices of its new Ultra Low Voltage processors.

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