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Expensive Ultrabooks Thwart Intel’s Plan

Intel’s plan to grab 40 percent of the notebook PC market with its new thin-and-light ultrabook concept has hit a roadblock, due to price problems, according to a Bloomberg report.

Despite Intel’s professed aim of getting ultrabook prices well below US$1000, that’s so far not happening, Bloomberg says. Most of the few ultrabooks that have so far made it to market are priced in the US at well over $1000, with high-end models going to $1500 or more – more than twice the average PC selling price – while Apple’s rival MacBook Air starts at $999.

In Australia, the two ultrabooks so far to reach the market are selling for well over that: the Acer Aspire varies from A$1199 to $2100; the Asus Zenbook starts at $1399 and peaks at $1,999.

One problem maybe that Apple has cornered the supply market for some components. Another is the use of pricy solid state drives, needed to keep weight and size down.

“If the cheapest ultrabook is $1000, the switchover isn’t going to happen,” said Suji De Silva, an analyst at ThinkEquity. “They put a very ambitious goal out there.”

Intel appears unconcerned. Prices will eventually come down to around US$699, according to the company.

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