Intel Says No to 50% CPU Price Cut Request by Ultrabook Makers

Intel has been talking up its new Ultrabooks with their thin profile and performance for a while now. The main feature was that the notebooks were supposed to have a price of under $1,000. Some of the top tier notebook makers have now said that that price will be hard to achieve with the processors from Intel racking up as much as a third of the cost of the notebooks.

Intel Ultrabooks

The notebook makers asked Intel to discount the processors by 50% according to sources. Intel refused to discount the prices by that much and instead offered a 20% discount. With the 20% discount, the processors are still expensive with prices for the Core i7-2677 at US$317, Core i7-2637 at US$289 and Core i5-2557 at US$250.

Intel is apparently afraid to reduce the price because it would cut into its profit margins. Some of the netbook makers are saying they will not be able to sell Ultrabooks below $1,000 because the materials to build the machines cost $700 or more in some cases.

via < ahref="">Digitimes]