Poor Ultrabook Sales See Manufacturers Opting for Low Cost Machines
According to multiple reports and sources, suppliers of ultrabooks are facing a lot of issues with profitability and market. As a result, many manufacturers are expected to turn to low-cost designs to make up for it. According to an anonymous CNET source that speaks directly to ultrabook suppliers, "The ultrabook adoption during the holiday season was ugly." Before you go jumping to conclusions, this source was only talking about one ultrabook manufacturer specifically.That being said, the ultrabook market for all suppliers is still facing challenges. According to the same source, "You've got a down market on the eve of a new operating system (Windows 8, obviously) at a price point that's fairly robust (meaning high)." On top of that, Acer, one of the high-profile ultrabook vendors, stated that it is currently not making a profit on lower-end models according to a recent report in The Verge.
A Tech Travel Agent can get an ultrabook rental to you within 24 business hours in over 1000 cities worldwide. The company's Aspire S3 ultrabook has been generally priced at $899 but could drop as low as $799. Acer's Chairman also stated back in December that ultrabook sales should be somewhere between 250,000 and 300,000 in Q4. Other top vendors, like HP and Dell, have just started selling ultrabooks, which makes their success or failure hazy.
However, a recent report from Asia has claimed that poor sales for vendors is forcing them to rethink ultrabooks altogether. According to a report in Digitimes citing industry sources, "Existing Sandy-bridge ultrabooks are too expensive." Many are speculating that, as a result, many ultrabook manufacturers will turn to thin laptops similar to ultrabooks that do not incur the high costs of current designs. Things like metal cases, expensive hinges and expensive solid state drives are what are keeping ultrabook prices high enough to dissuade potential buyers.
These new thin laptops are predicted to have prices in the $600 range and launch in Q2 2012, although that strategy could also backfire. Low-cost laptops, like the netbook, have yet to be widely accepted due to the fact that they were built from cheap chassis materials, had low-end components and lacked the performance power of other laptops. What this could mean for the laptop industry as a whole is still up in the air.
Source: CNET - As ultrabook makers seek stronger sales, some opt for low cost
Bad news for the computer industry has just recently been released. Thanks to weak demand for consumer PCs, growth for worldwide PC shipments showed a 1.1% decline from the first quarter of 2010 according to a Gartner's PC Quarterly Statistics Worldwide by Region program. Weak demand for consumer PCs was the primary inhibitor. However, despite the weakening of sales around the globe, the Asia Pacific region showed encouraging growth as PC shipments surpassed 28.2 million in the first quarter of 2011. This is interesting due to the fact that, statistically speaking, sales of consumer PCs usually do not show this much popularity or growth in the beginning of the year. The first quarter of most years is stereotypically slow for PC sales. Gartner also noted, however, that these shipment results indicate potential sluggishness and not a typical seasonal slowdown. Gartner pointed out that these figures are well below earlier predictions for a 3% growth in the first quarter of 2011. In response to different markets in Asia, Gartner said that consumer PC sales were also slow both in China and also in Taiwan and that they failed to attract customers during the celebration of Chinese New Year. Consumers in India were occupied by the Cricket World Cup and preferred to upgrade their personal PCs or buy a new TV rather than home electronics. In addition to that, PC shipments in Japan hit a decline of 13.1% in 2011's first quarter. According to Principle Analyst for Gartner Mikako Kitagawa, "Weak demand for consumer PCs was the biggest inhibitor of growth. Low prices for consumer PCs, which had long stimulated growth, no longer attracted buyers. Instead, consumers turned their attention to media tablets and other consumer electronics. With the launch of the iPad 2 in February, more consumers either switched to buying an alternative device, or simply held back from buying PCs. We're investigating whether this trend is likely to have a long-term effect on the PC market." Computer company HP accounted for 17.6% of worldwide PC shipments in the first quarter of 2011. HP also maintained the number one spot. Acer saw declining shipments of 12.2% and Dell reported a shipment decline year-over-year for the first time in six quarters. Lenovo continued to price products competitively in the consumer market as well as the professional market and enjoyed the strongest growth among the top vendors as a result. Source: 
