Cheap ultrabooks are on the way folks. Intel believes ultrabooks priced as low as $599 could appear in the second half of the year.

However, the lower price tag will result in some tradeoffs. Low end ultrabooks will use cheaper materials, so don’t expect magnesium shells or exotic alloys. Furthermore, it seems very unlikely that $599 ultrabooks will rocks SSDs, they will probably feature hybrid storage to pinch a few pennies.

Speaking at an event in Taiwan, Intel country manager Jason Chen said  that the mainstream ultrabook price should hit $699. Cheaper models, with a bit more plastics and aluminium instead of costly materials, should also appear later in the year.

Chen believes ultrabooks will account for 30 to 40 percent of global notebook shipments in 2012.

More here.