The Rise of Low Priced Ultrabooks: Traditional Notebook Market to Take a Hit

3 Jul

The Ultrabook market is about to get a lot bigger following the introduction of Intel’s third generation Ivy Bridge processor (first announced at the 2012 Computex Event). In addition to reports suggesting the impending surge of ultrabooks which utilize Ivy Bridge i7 and i5 processors, several sources have confirmed that a great majority of these computers will be offered to consumers at highly affordable prices. Compared to conventional slim notebooks, many of which inevitably fall around the $1000 USD mark, the average price of an Ivy Bridge-powered ultrabook is expected to hover between $699 and $799 USD.

That an ultrabook could be available at such a low price is attributable to a variety of manufacture-related factors. Notable examples include the efficient use of raw materials, simplification of board components, and more importantly, the utilization of Intel’s 17W Celeron 887 processor, which costs significantly less than the Core i3 processor. A bundle of these materials could allegedly be purchased for as low as $85 USD, making the production of the current generation of ultrabooks an extremely cost-effective process.

While low-cost ultrabooks will undoubtedly create waves of impact upon their release, traditional, weightier notebooks are expected to take the hardest hit. With features that are potentially outmatched in every way, conventional notebooks will only stand a chance against their slimmer, more affordably priced cousins during the back-to-school sales season, when prices tend to fall across the board.

Considering the current global economic situation, TrendInsider believes that low-priced ultrabooks will not only succeed beyond expectations, but also significantly outperform traditional notebooks in terms of sales. Looking back, 2012 has not been a particularly good year for original equipment manufacturers (OEM) nor brand-based industries. Given that this trend is likely to continue into 2013, and assuming that SSD prices will continue to fall, it will be interesting to observe just how the traditional notebook industry will try to maintain their profit margins in the face of the ultrabook’s rising dominance.

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