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Intel Wants Partners to Help Cut Price of Ultrabooks

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 (opens in new tab) 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.

Désiré Athow
Contributor

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.