Ultrabooks turning out to be dud?

Intel unveiled Ultrabook concept with much fanfare at the Computex. At the same time couple of manufacturers announced their plan of launching Ultrabooks and showcased early prototypes. But now according to a research report, computer manufacturers are having tough time with Ultrabook concept. The primary reason for this is pricing. Ultrabooks usually cost $1,000 and has almost 50-100% higher production cost compared to regular notebooks, thereby significantly reducing vendors' margins.

If this is not enough Apple's MacBook Air sells at the same price, which considerably increases the competition. If consumers are to choose between $1000 ultrabook and $1000 MacBook Air, most of them will surely prefer the latter.

And because of high component costs most OEMs' margins will suffer hugely. So it is pretty much likely that they'll stay away from Ultrabook till the time trend becomes clear or launch just one or two products to test the water.

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