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Popularity of the MacBook Air to limit early Ultrabook production

by Kelly Hodgkins Sep 6th 2011 at 10:00AM

Intel and its manufacturing partners are gearing up to launch its line of Ultrabooks, a thin notebook that'll compete with the MacBook Pro. Instead of a blow-out launch, a report from Digitimes suggests companies like Lenovo, Asus and Acer are taking a more conservative approach.

Ultrabook manufacturers have reportedly order a mere 50,000 units which will land in retail outlets this fall. These companies will gauge the acceptance of this new line before ramping up production. The popularity of the MacBook Air, which is quickly becoming one of Apple's best-selling model this year, is one factor contributing to this limited production.

Even if they can undercut the MacBook Air with a sub-$1000 price tag, notebook manufacturers may have a hard time competing with Apple's slim, but powerful MacBook Air model.

[Via TechCrunch]



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Intel and its manufacturing partners are gearing up to launch its line of Ultrabooks, a thin notebook that'll compete with the MacBook...
 

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ANDRE SALAZAR

I heard Intel is charging up to $300 for their processors. That's what has the OEM's struggling to compete with Apple. Intel then wastes $300M to give away to them to help them build better, cheaper products (instead of investing in components). I guess Apple has tied up the component market so-well, the competitors are running out of options. Oh ya, don't forget Apple has bought all of the "lathes" that press the aluminum into unibody parts. They won't be available to anyone until 2016. Just another obstacle standing in the way of the "copycat" competition.

September 07 2011 at 7:24 PM Report abuse rate up rate down Reply
Yuusharo

Slight error in the story:

"Intel and its manufacturing partners are gearing up to launch its line of Ultrabooks, a thin notebook that'll compete with the MacBook [Pro]."

The MacBook Pro isn't exactly thin and light... yet. Perhaps TUAW has some ultra secret review units they're under NDA about!!

September 06 2011 at 1:33 PM Report abuse rate up rate down Reply
1 reply to Yuusharo's comment
ANDRE SALAZAR

Don't worry, he's just jumping the gun. The MBP will be thin & light with SSD real soon.

September 07 2011 at 7:18 PM Report abuse rate up rate down Reply
Mike McLennan

It would be interesting if someone built one of these to be 'hackintoshable'.

September 06 2011 at 10:40 AM Report abuse rate up rate down Reply
1 reply to Mike McLennan's comment
speedracerx808

I don't see why they wouldn't be. Aren't they essentially built on the same platform?

September 06 2011 at 8:45 PM Report abuse rate up rate down Reply
01nb

This all depends on how much under $1000 we're talking and what the specs are at that price.

If you have to beef the specs up to get to the standards on the MBA, causing the price to jump way up from it's sub-1000 price to an above-1000 price, then it's a fail fail fail.

Earth to non-apple mfgs: you have to sell it for WAY less than Apple Like 40-50% less, and provide similar quality. Or you will fail.

September 06 2011 at 10:14 AM Report abuse rate up rate down Reply
Richard Servello

Its cute, but it will be an underpowered netbook. The 2011 MBA is a full on thin macbook.....it handles like a madman!

September 06 2011 at 10:06 AM Report abuse rate up rate down Reply
1 reply to Richard Servello's comment
David S.

Identical CPU, RAM, northbridge, RAM, SSD (you know- the parts that perform functions necessary for PCs to be more than overgrown calculators)... how is it a netbook again?

The question Intel needs to ask is, can Apple's marketing and premium design choices (such as relying on IPS panels, keyboard quality, Operating System) sell more ultra mobile Intel CPUs than Lenovo, Asus, Acer, etc that eschew those choices for a lower retail price? If Apple can sell more ultrabooks than Acer et. al. can, then Intel should not mind the shortage to PC manufacturers that will only create excess unsold surplus units.

My personal opinion is yes, because price conscience customers will likely prefer a standard mobile CPU laptop at $600 over a ultra mobile at $800 or a $1k Mac. Low end ultrabooks will find themselves squeezed between Macs on the high end, and standard voltage non-Apples on the low end. Once iOS 5 launches Apple will have an increasingly better option on the low end as well against low end ultrabooks. What Intel needs if anything, is a better answer to the tablet dilemma. When Intel can't sell standard voltage i3's & i5's because people are buying iPads, Intel will need an answer to please its stock holders.

September 06 2011 at 10:46 AM Report abuse rate up rate down Reply
2 replies to David S.'s comment
Mabhatter

Here comes an automotive analogy!

Your argument for Untel is exactly what US automakers were going through... Unable to sell SUVs with $4 gas, Toyota and Honda finally kicked the US auto makers out of their own markets.

Intel + Microsoft + Dell has been selling the PC equivalent of SUVs for a decade. Expecting 100% more for "mobile" laptops over regular ones? Apple has laid the course.. If it's not getting 7 hour battery, STOP MAKING IT! instead Intel has been designing whole chip families like Atom to save their margin with oddball "3-cylinder" engines for "3-wheel cars" while Apple is like Toyota with a functioning Hybrid for sale before the crisis hit.

All the CPUs cost Intel the same to manufacture. Much like it doesn't really cost automakers to build more efficient engines when they build entire factories for the things. Intel's BIGGER PROBLEM is that Intel makes all the MacBook processors and Apple is paying them big cash (and not going out if business) so Intel needs to get its other customers something from the tablescraps Apple has left. Intel needs to just stop making desktop processors at all.. Just toss some cheap server chips out there... Apple doesn't use ANY desktop chips, only mobile ones. But of course Apple is getting $999 minimum for all but one model... Apple is like 75% of the CASH for the over $999 PC Market now... Really think what that means for Intel's product mix?

September 06 2011 at 12:34 PM Report abuse rate up rate down
speedracerx808

@Mabhatter - You have no idea what you are talking about.

1. It does not cost the same to make all CPUs. Don't forget that R&D are part of manufacturing costs as are actual materials used. And not all manufacturing processes are the same either.

2. Apple does not have that much market share when you compare Laptops and Desktops to their PC equivalents. Apple only controls the tablet market at this point. So how you can say they are getting "table scraps" is beyond me. Apple controls less than 15% of desktop and laptop sales globally.

3. Drop desktop processors? So throw away hundreds of millions of sales a year? Seriously? You fail at business 101.

The only thing intelligent you have pointed out was their well known gap for not having a processor built for tablets and other ultra portable devices.

September 06 2011 at 9:07 PM Report abuse rate up rate down
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