However, demands to cut CPU prices by up to 50 percent seem to be falling on deaf ears. Intel is only ready to cut prices by 20 percent for first-tier vendors. The issue seems rather complex and neither side is willing to budge.
Vendors are worried that the high cost of Intel Sandy Bridge CPUs and associated chipsets will eat into their margins. With a platform cost north of $300 with the 20 percent cut, vendors seem to have a legitimate point. They will be forced to use ultrathin screens, pricey lithium polymer batteries and a host of other fancy technologies to make Intel’s ultrabook concept work.
However, the high cost of such components coupled with Intel’s $999 MSRP doesn’t seem to leave enough room for vendors to make a lot of dosh on ultrabooks.