Intel struggles to keep Ultrabooks below $1000

In the world of computing performance matters, but a reasonable pricing policy is equally important.

The new generation Ultrabooks are exceedingly slim and lightweight, yet they offer much better performance as compared to conventional laptops: there is provision for larger, higher resolution displays, solid state storage and faster processors. The features make the device quite attractive, but the problem lies in the price. Intel is finding it difficult, if not impossible, to keep the price of these devices below $1000.

A MacBook Air costs $999. There are rumours that due to the high cost of materials, an Ultrabook might end up costing more than $1000 by the time it reaches the end user. However, according to sources, Intel has already provided vendors with the price list of components that would go in two different types of Ultrabooks. Intels stand is that component cost in 21 mm Ultrabook should fall in the range of $475 to $650; in case of 18 mm device the components could be between $493 and $710.

Intel is planning to have a meeting with the manufacturers of the Ultrabooks to discuss the pricing issue. However, the manufacturers are griping that the price is high because Intel is charging too much for the parts that it is supplying. One of the first Ultrabooks to hit the streets is the Asus UX21. It comes with a solid state disk and Intels latest chips. According to Taipei Times, the price of the UX21 could actually range from $1000 to $2000 as the processors and solid state disks are expensive.

A decent laptop is easily available these days at less than $800. If portability is what the user requires, then they can easily pick up a netbook, which is feather light and costs around $300. So it will be difficult for many users to fork out $1000 plus for an Ultrabook. Asus, HP, Dell, Lenovo, and Acer are all expected to launch their Ultrabooks during the later part of this year; if their devices cost more than $1000, it will be a cause for disappointment.

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