Unveiled a couple of months ago at the Computex trade show, Intel's new 'Ultrabook' design is a set of guidelines for PC notebook makers aimed at marrying the performance and capabilities of a traditional notebook with "tablet-like features" in a "thin, light and elegant design."
A direct response to Apple's hot-selling MacBook Airs, Intel says it plans to reach a 40 percent share of the consumer notebook market with the "no-compromise" Ultrabook designs by the end of 2012. Its guidelines call for the systems to retail for less than $1000 and sport form-factors that are no more than 20mm thick.
The first Ultrabook notebooks were slated to arrive at that price point in time for the 2011 holiday shopping season but a new report reveals that "actual production costs" to build the new notebooks are roughly as high as Apple's MacBook Air retail prices, which could "render the hope [of matching the Air's pricing] practically infeasible."
Asustek Computer and Hewlett-Packard will reportedly lead the charge with initial Ultrabook production but the former's 11.6-inch UX21 Ultrabook will reportedly retail for $1000 while the 13.3-inch UX31 will fetch $1600 — $300 more than Apple's new $1,299 13.3-inch MacBook Air. What's more, Asustek hasn't provided any additional specifications for the notebooks, which could similarly struggle to match those of Apple's Airs'.
As such, Asustek is now said to be taking a more conservative approach towards its Ultrabook initiative in 2011, and instead plans only a small volume launch "to test market response" before solidifying plans to make large-volume launch in 2012 when demand is proven and "production costs decrease."
The matter underscores how Apple is slowly but successfully taking its proficiency in supply chain management, long-term component pre-payments, and cost effective designs originally conceived for its iOS device strategy, and transitioning them to its Mac platform, which has long struggled to compete with pricing from rival PC makers.
Designed more like an iPad than a traditional Mac, the new MacBook Airs are already seeing volume shipments in the millions, affording Apple a head start in the market for ultra portables similar to the one its seen in the tablet market, where its agreements with component manufacturers far undercut pricing being extended to competitors who can't compete on volume.
As a direct result, Apple's command of the supply chain threatens to suffocate rivals' access to similar components, thereby limiting the market opportunity for those competitors who then can't catch up on volume shipments of their products needed to secure similar component deals and rock-bottom pricing.
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So the Apple tax on the consumer is finally revealed to actually be an Apple subsidy to the consumer.
So the Apple tax on the consumer is finally revealed to actually be an Apple subsidy to the consumer.
Yeah, I've always laughed when people try to accuse Apple of overpricing their computers. When you really look at the competitors' attempts to compete head to head with Apple hardware (HP Envy, Dell Adamo, Samsung Series 9, ultrabooks), the prices are either the same with inferior hardware and build quality, or equal in those but with a much higher price tag. The fact that the competitors can't even turn a profit with those prices is even more evidence of how poorly run these companies are in comparison.
It's not going to stop certain Apple haters from spreading their misinformed (and usually borrowed) opinion that Apple products are across the board more expensive and therefore not worthy.
Somebody followed Apple footstep yet again. Please anybody, try to be a leader for once.
Gone are the days when the top PC was a big set top box that you could assemble yourself from components you bought at Fry's for a third of what Apple was charging for its cheapest Mac.
Now Apple can buy the RAM, screens, and other key components for less that we pay at Fry's, and less than what its competitors can pay anywhere in the world.
What a difference a decade makes.
EDIT: Also gone are the days when you could upgrade. Hello to the era of lovely products that you use for three years and then get rid of!