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Custom made 'thin' parts reduce profit margins too

Ultrabook makers again grumble about Intel CPU pricing

Far Eastern manufacturers have again expressed concern about their ability to hit the magic $1,000 price point of Intel’s ultrabook push.

Acer president Scott Lin said that ultrabook vendors would be forced to use a lower-end processor or reduce component specification unless Intel could be persuaded to drop the price of the CPUs in ultrabook computers.

The comments published in the DigiTimes were echoed by ODM Compal chief Ray Chen said that Intel’s pricing was unlikely to help the firm reach the 40 per cent ultrabook market share figure.

Other sources quoted in a separate DigiTimes report suggested that custom-made thin components in ultrabooks were putting the squeeze on manufacturers and reducing their profitability down to around half the level of traditional plastic-bodied notebooks.

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