Wednesday, March 7, 2012

As ultrabook makers seek stronger sales, some opt for low cost

Ultrabook suppliers are still dealing with pesky market and profitability issues, according to a CNET source and two reports. And some will turn to low-cost designs as a result.

"The ultrabook adoption during the holiday season was ugly," an industry source, who speaks to ultrabook suppliers, told CNET. That source was speaking about sales for one particular ultrabook vendor.

The market for all ultrabook suppliers, however, is still challenging. "You've got a down market on the eve of a new operating system (Windows 8) at a price point that's fairly robust (high)," said the source.
And Acer, a high-profile ultrabook vendor, said today that it is not making a profit for lower-end models, according to a report in The Verge.

Acer's Aspire S3 ultrabook is priced generally at $899.99 but can go as low as $799.99 at Best Buy.

Acer's chairman said in December that ultrabook sales should be between 250,000 and 300,000 in the fourth quarter.

Other first-tier vendors like Hewlett-Packard and Dell have only just begun to sell ultrabooks so it's not clear how they are faring.

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