Sales Estimates Slashed for Ultrabooks for 2012 Due to Poor Adoption
October 2, 2012 8:57 AM
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Ultrabooks on the decline
About a month ago, Intel
cut the outlook
for its Q3 earnings by $1.1 billion. The reduction in earnings indicated that perhaps Intel's ultrabooks weren't selling as well as the company wanted. Intel originally hailed the ultrabook as the next big thing to revive the struggling PC economy.
So far, ultrabooks haven't performed as well as expected in large part due to the high cost of the machines and increasing popularity of tablets. Research firm IHS iSuppli has cut its shipment expectations for ultrabooks globally during 2012. Previously, iSuppli expected 22 million ultrabooks to ship globally during 2012. The research firm has now cut that estimate to 10.3 million for the entire year.
The research firm cites two major reasons for poor sales in the ultrabook realm citing "nebulous marketing and unappealing price." ISuppli also points a finger at Intel as having to own up to standards that are too strict, confusing the marketplace between what's an ultrabook and what is an ultrathin notebook.
Sony VAIO T13
"So far, the PC industry has failed to create the kind of buzz and excitement among consumers that is required to propel ultrabooks into the mainstream," Craig Stice, IHS's senior principal analyst for computer platforms, wrote in the report.
The research firm also criticized pricing of ultrabooks that sit near $1000 for most units. The company believes that a price cut bringing ultrabooks and the $600-$700 price range could increase sales next year. When Intel first started counting the ultrabook, $600-$700 was the price range many expected the machines to come to market in.
ISuppli believes that Intel's new processor, code-named
, expected to launch in the middle of 2013 will also help improve sales in the ultrabook market.
is also expected to have an impact on sales in the segment.
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Cost is the big issue
10/2/2012 12:48:57 PM
The only ultrabook that tempted me is the ASUS Zenbook, yet for only a few bucks more I can get something slightly heavier and more capable. For a few bucks more than that, I can get something relatively heavy, but much more powerful--essentially a desktop replacement.
(The low memory on the Zenbook and the inability to expand it is a big problem as are the limited options for SSDs.)
RE: Cost is the big issue
10/2/2012 1:54:45 PM
Cost and mediocre performance for the price is what's stopping most people. You can buy an Ultrathin for the same money that out-performs the joke called Ultrabook. Only an idiot would pay more to get less performance at the same weight.
"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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