Apple, Business, Companies, Hardware

UPDATE: Ultrabook Partners Griping About Intel CPU Pricing


DigiTimes is reporting that Intel partners Scott Lin, president of Acer Taiwan and Ray Chen, president of Compal Electronics both have asked Intel to drop the Ultrabook price to below $1,000 by reducing their CPU pricing.

Acer’s Lin is reported to have said that unless Intel provides a subsidy for their expensive Ultrabook CPUs, "brand vendors are likely to adopt a lower-end processor or reduce the component specifications to meet the price goal, but the related system performance may be significantly reduced, while vendors’ willingness of pushing Ultrabook will also be weakened."

Acer has already predicted that just 25 percent of its sales in 2012 will be Ultrabooks, far less than Intel?s 40 percent target.

Compal’s Chen also pointed out that "if Ultrabooks suffer from weak sales, while Apple continues to enjoy strong profit, the Wintel alliance will need to do something or else all the related IT player may be gone."

Apple MacBook Air starting sales prices for 11" and 13" models
Apple MacBook Air starting sales prices for 11" and 13" models

According to our sources, the problem that Intel is trying to be oblivious about in their discussion with ODM partners is the fact that an 11" MacBook Air sales for $999, and the 13.3" model starts at $1299, while Intel is targeting $1149 introductionary price. The fact that Intel is very strict in terms of materials used is pushing the Ultrabook platform to unattractive prices, especially when you take a look at Apple’s products.

BSN* will be watching for any price drops by Intel. Clearly this opens the door for AMD to push their 32nm Llano and their next generation Trinity APU. Consumers could see at CES 2012 in January some very interesting thin-notebooks with better pricing.