Intel will not give in to demands of Ultrabook vendors to reduce the price of its CPUs by 50 percent, DigiTimes is reporting.
Citing anonymous sources, the Taiwan-based publication said that Intel was asked by its Ultrabook vendor partners to cut the price on its CPUs to help the companies improve their chances of profitability on the upcoming machine. However, for fear of missing out on its own profitability marks, Intel has agreed only to a 20 percent discount and some assistance with marketing costs.
Intel introduced Ultrabooks earlier this year. The yet-to-be-released computers from vendor partners, such as Asus, feature a laptop-like design with "tablet-like features." In order to qualify as an Ultrabook, a computer must be 0.8-inches thick or less and cost under $1,000. For its part, Intel has high hopes for Ultrabooks, saying that they could make up a large chunk of portable shipments in the coming years.
"Many of the super-sleek devices today are quite pricey. The price points need to become more mainstream," Intel marketing chief Tom Kilroy told CNET in an interview earlier this year. "And as volume ramps, say by the end of 2012, we think as much as 40 percent of the volume will be in this ultra category."… Read more