The majority of the Ultrabook notebooks that have been released so far retail for around the $1,000 and above mark, and Intel wants to get the price of these devices down, although manufacturers haven’t been able to make the devices as cheap as Intel wants them to.
According to a recent report by Digitimes, Intel intends to subsidize each Ultrabook by around $100, which would allow manufacturers to sell the devices for up to $100 cheaper. The subsidy will be provided as a marketing subsidy to manufacturers by Intel.
Intel’s Strategy to Boost Ultrabook Adoption
Intel obviously wants the hardware manufacturers to adopt its ultrabook platform, and thinks that subsidizing each one is a way to do this. This should also make the devices around 5 to 10 percent cheaper for consumers. By reducing the price point, Intel aims to make Ultrabooks more competitive against other types of laptops and tablets that are currently dominating the market.
The subsidy is not just a financial incentive but also a strategic move to ensure that Ultrabooks become a mainstream product. Intel’s vision for Ultrabooks includes features like ultra-thin designs, fast boot times, and extended battery life, which they believe will appeal to a broad range of consumers, from business professionals to students.
Impact on the Market and Consumers
The potential price drop could have a significant impact on the market. For instance, a $100 reduction might make Ultrabooks more accessible to a wider audience, including those who are budget-conscious but still want a high-performance device. This could lead to an increase in sales volume, which in turn could encourage more manufacturers to invest in the Ultrabook platform.
Moreover, the subsidy could spur innovation among manufacturers. With the financial cushion provided by Intel, companies might be more willing to experiment with new designs and features, further enhancing the appeal of Ultrabooks. For example, we could see advancements in areas like touch screen technology, biometric security features, and even more efficient cooling systems.
Another aspect to consider is the competitive landscape. As Ultrabooks become more affordable, they could pose a serious challenge to other laptop categories, such as traditional notebooks and even some high-end tablets. This could lead to a price war, benefiting consumers who might see lower prices across various types of computing devices.
Additionally, the subsidy could have a ripple effect on the supply chain. Component suppliers might see increased demand, leading to economies of scale that could further reduce costs. This could make it even easier for manufacturers to offer Ultrabooks at competitive prices without compromising on quality.
Source Digitimes
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