Intel will not acheive its target with ultrabooks at current pricing

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The objective of Intel to make the computer industry usher in a new age of ultrabooks before the year ends is currently at a standstill because of the high pricing of the range which has been consistently deterring buyers. The largest chipmaker of the world is attempting to convert up to 40% of its consumer laptops to the new format, which offers an ultra slim form factor, prolonged battery life and instant startup.

Their motive is to transform the Windows based notebooks into devices which resemble tablets and smartphones, or at least something like the ultra-thin MacBook Air, which is the best-selling laptop from Apple. Intel manufactured chips are not being used in the most popular tablets and smartphones, hence the ultrabook project attempts to influence its dominance in the PC sector at a time when mobile devices are increasingly being used to access the internet.

The biggest challenge in front of Intel now is that almost all ultrabook models are priced at more than $1000, and the company has stated that the format will not achieve its target of 40% if the prices don’t recede. An analyst named Suji De Silva says that the switchover is not going to take place if the cheapest of these notebooks comes for $1000.

Ultrabook laptops are not manufactured by Intel itself. The company created only the specifications of this new range of laptops and has left the manufacturing process to its partners like Lenovo, Acer and Asustek, which have all recently released the said devices which emulate the Apple MacBook Air in its light weight and thin build. Even as reviews of the laptops have generally been favorable, the cheapest of these devices is priced at $900. As the quality and performance of the components used in them increases, the cost goes up to $1500, over two times the average selling price of PCs, stated IDC.

Most consumers have come to expect the prices of laptops to be below $500. HP, the largest PC maker of the world, offers a range of products which starts at $349. The MacBook Air, which was released in 2008, begins at $999. This puts the ultrabook range at loggerheads with Apple, without them benefitting from the company’s brand value and Mac OS. An analyst named Stacy Rasgon, says that this is not a competition that ultrabooks can likely handle over the long run.

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