Notebook makers are expected to slash prices of first generation ultrabooks ahead of the planned Ivy Bridge launch in early Q2.

Prices of several ultrabooks from Acer, Lenovo and HP have already tumbled by up to 25 percent in the US and further cuts are expected. Vendors are already introducing second generation Sandy Bridge ultrabooks, but we will still have a wait a few months before we see the first models based on new Ivy Bridge processors.

Digitimes estimates that the average retail price of ultrabooks could drop to $699 - $799 by the end of the second quarter, which would be in line with Intel’s pricing plans announced last year.

More here.