Ultrabook success may depend on price, expert says

The Ultrabook™ computer, Intel's slim, highly portable take on the notebook, is expected to be one of the biggest technology stories of 2012, but according to one expert, the device's success may ultimately depend on manufacturers lowering their prices.

Technology news provider CNET reports that Mark Moskowitz, an analyst at J.P. Morgan, believes that Ultrabooks must be able to get under $800 before they can make any real noise in the market and draw buyers away from Apple® and its MacBook Air®.

Currently, most Ultrabook models are expected to sell for $1,000 or more. Apple's device is also priced in the $1,000-and-up range, but has the advantage of familiarity, having been on the market for nearly four years.

"In general, we think that Ultrabooks are highly discretionary devices, and pricing on competitive offerings must fall below $800 before posing a viable threat to Apple's MacBook Air," Moskowitz says.

Intel® is already making plans to cut the costs of Ultrabooks, with CEO Paul Otellini announcing the goal of getting prices under $700 by the end of 2012. While the Ultrabook is expected to see early success, Intel's goal may need to be quickly realized to maintain the enthusiasm.