Intel Wants Ultra-Cheap Pricing for Ultrabooks
Intel hopes to stop the tablet wave dead in its tracks with its ultrabooks, a new breed of ultra-thin and -light notebooks starting at around $1,000. While most PC vendors are finding it difficult to meet the current price requirement for ultrabooks, Intel wants them to move to an even more competitive pricing model in the future.
According to Navin Shenoy, vice president of the Sales and Marketing Group and general manager for Intel Corporation in Asia-Pacific, ultrabook prices will have to be priced further south of $1,000 for Intel to meet its stated goal of conquering 40 percent of the consumer laptop market by the end of 2012.
Earlier this week, Shenoy talked to Reuters about the $699 price point that some analysts are advocating as being key to ensuring the success of ultrabooks. "At some point you'll have to be at that price point, but it doesn't have to be overnight. It takes time to engineer a cost down," Shenoy told Reuters.
But Intel is unlikely to chip in by lowering the price of its processors: "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."
Comments
Comments are closed on this article
![]()
georgec
October 27, 2011 at 9:25am
Intel keeps championing the idea of cheaper ultrabooks but they are steadfast in the CPU pricing. The manufacturers are practically making these things out of cheap plastic and don't seem able to trim the fat anywhere else.
![]()
thetechchild
October 27, 2011 at 6:00pm
Kind of stupid really. They say that "working with the rest of the industry" is required, while their CPUs (at least on the desktop lines) cost $250+ for decent performance. Intel is offloading that excess pricing onto laptop manufacturers instead of cutting pricing themselves and delivering actual value (i.e. bang for the buck). Who are they kidding? They say giving away the CPUs for free wouldn't bring laptops under the $700 mark -- well, it'd get them more than one half of the way there by cutting off $200.
When Intel gets their crap together before shoving the real work on other companies, is when they'll see real growth in mobile markets (laptops, netbooks, tablets, maybe even smartphones).
![]()
joeyjr
October 27, 2011 at 12:10pm
Paul wrote another artical that I think relates to this.
http://www.maximumpc.com/article/news/displaysearch_wintels_tablet_future_bleak
http://www.maximumpc.com/article/news/nvidia%E2%80%99s_jen-hsun_huang_talks_about_windows_arm_tegra_and_cost_rd_asiadhow to manage Intel during the transition to ARM, how much his company is spending on R&D,
I think Intel might consider chips for a windows 8 tablet, before Nvida does because there already working on making them. If Intel wants 700 dollar ultrabooks to be part of the solution and re-think what consumers may want.
![]()
someuid
October 27, 2011 at 8:50am
I'm sure we've all heard the saying "You can wish in one hand and crap in the other. Let me know which one fills up faster."
Intel management needs to get busy at being competitive on price as well as features and stop wasting time trying to force everyone to play by their rules and wishing for sub $1,000 laptops that half or two thirds of the costs is based aroud their CPU/chipset. No one is going to play their game when there are other options on the table (AMD, Arm, NVidia).
While I'm sure they might be able to finally force it to happen, those other options aren't going to sit around and wait, and Intel will burn bridges.
Get off your horse Intel. Lead by example, not by force.
![]()
Scatter
October 27, 2011 at 7:01am
If Intel wants ultrabooks (stupid name btw) to be priced cheaper then they should manufacture one themsevles and stop asking everyone else to lower their prices.
![]()
praack
October 27, 2011 at 6:38am
The thought that people would seriously ditch 3-400 dollor laptops, and 400-500 dollar tablets for the 900 and above ultrabook (based on the AIR model) was a dream. But it seemed logical to intel and others
netbooks originally were cheaper than laptops, then came tablets- more expensive than netbooks with the added APP revenue stream, so push people into the higher bracket.
especially since everyone has a tablet- right! (well even a basic e-reader is counted just like an Ipad in the surveys)
I don;t see the ultrabook thing going anywhere- casual users will buy tablets- most people who need a more rounded experience will continue with laptops or desktops
![]()
AETAaAS
October 27, 2011 at 6:04am
Ultrabooks like the Acer S3 use processors and chipsets which already cost around $600, two thirds of the $900 the S3 is retailing for. If Intel wants to drive prices down, they better put their money where their mouth is and drop the unit price of their components.
With Windows 8 able to run on ARM and many low voltage processors such as nVidia's Tegra and those from Samsung, TI, Qualcomm and so on, its going to be an interesting space to watch.
Log in to MaximumPC directly or log in using Facebook
Forgot your username or password?
Click here for help.


















