Intel refusing to cut ultrabook chip prices

We’d all love for ultrabooks to reach that magical sub-$1000 price range, but it’s looking less and less feasible by the day. Intel has already invested around $300m in the ultrabook concept and a switch to a fiberglass based design could be in the works, but all that may still not be enough to reach targeted prices while maintaining profits.

According to a report by Digitimes, Intel has rejected a demand from OEMs to reduce ultrabook CPU costs by 50%, and instead countered with a 20% figure. According to the publication, Intel is insisting on their high costs in order to maintain a leading position in the supply chain and to minimize any effect on future laptop development.

As for the discount being offered by Intel, it will only apply to “first-tier notebook players” with other manufacturers being left out. The price cut appears to pertain to the Core i7-2677, Core i7-2637 and Core i5-2557 CPUs, with their prices ending up at $317, $289 and $250 respectively.

While both Intel and the OEMs have grounds for their argument, ultimately it may be unfeasible for companies to offer a ~$900 notebook when the CPU accounts for 1/3^rd of the price. As such, Intel will likely have to decide how far they’re willing to go with the ultrabook project and whether or not future gains can compensate for short-term losses.

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