Second Gen Ultrabook Prices May Not Drop Below $799

June 27, 2012, By Sanjeev Ramachandran

With Microsoft announcing that it will be pricing one of the Surface tablet models close to that of ultrabooks, it was sure that ultrabooks will have to fight a new rival in the marketplace.

If that was not tough enough, it has been reported that vendors were finding it difficult to bring prices below $799 as claimed by Intel in its promotional attempts of the second generation ultrabooks.

Despite the Chipzilla providing many cost cutting measures for the second gen ultrabooks, Original Device Makers are still not able to put them into practice mainly because the prices  of processor chips, SSDs, display panels and other key components have not dropped as expected, say Taiwanese sources close to the upstream supply chain of ultrabooks. Moreover, the price trend is expected to be static in the second half of this year too.

So with the present price level for the components, the retail prices of second gen ultrabooks, will surely exceed $859 with mainstream models reaching above the $1,000-mark.

Though the emergence of Windows 8 will help increase the demand for these machines, ODMs think that introducing touch panels may increase the price further.

Intel has urged Hewlett-Packard (HP), Dell, Acer, Asus, Toshiba, Gigabyte Technology, Lenovo, Samsung Electronics and Sony to come out with their plans for the second gen ultrabooks.

According to Intel official sources in Taiwan, there will be 110 models unveiled in the second half of this year, including models priced at $699.

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