In a bid to boost sales of Ultrabooks and reach its own target of obtaining 40 percent of the laptop market, Intel apparently wants its partners to slash their selling price.
Navin Shenoy, Intel's vice president of sales and marketing and general manager for the Asia-Pacific region, told Reuters in an interview that this is a challenging target (to reach the 40 per cent consumer PC target by the end of 2012).
But most likely, someone somewhere will have to give and it won't be Intel by the looks of it. The cheapest ultrabook, an Acer S3, costs $899 which means that there would need to be a concerted effort by members of the component industry in order to bring prices down.
The Bill of Material of the Ultrabook is estimated to be around $699 which gives brand vendors like Asus and Lenovo very little room for manoeuvre.
It also means that the price of other components (LCD, memory, SSD, motherboard, chassis) will have to go down in price in order to reach a mass market critical price point.
Shenoy said that even if Intel were giving the chip for free, they wouldn't be able to hit the $700 price point but he failed to mention the fact that often, the processor (and accompanying Intel hardware) is one of the most (if not the most) expensive components in the Ultrabook.