Subject: General Tech | August 16, 2011 - 12:00 PM | Jeremy Hellstrom
Tagged: ultrabook, Intel
There has been a bit of talk on the PC Perspective front page about Intel's new Ultrabook form factor and if it can profit Intel to release in a market that already has Apple firmly embedded in the minds of consumers as the "thin" guys. First were the complaints from manufacturers that the bill of costs for an ultrabook was in the neighbourhood of $1000, which would put the price of sale above the competitions. Intel then responded with a claim that the 11" and 13" ultrabooks with a thickness of 18mm will be between $493 to $710 to manufacture and the larger 14" to 17: inches, 21mm thick models will run between $475 and $650.
That price disparity seemed a little odd, as there was no explanation from Intel about where the manufacturers got their maths wrong nor an announcement of price drops from Intel to make up the difference. What we did see was a promise by Intel to provide $300 million in funding to those who develop technologies to further the ultrabook form factor, which might help offset some of the costs of manufacturing but certainly not enough to reduce the bill of sales by a third or more.
Now the waters are even further muddied as we hear today from Digitimes that Intel is refusing a request by manufacturers to cut the price of the CPU models which will be found in ultrabooks by half. Instead Intel is willing to drop the price by 20%, along with some marketing subsidies which will help once the product makes it to market but which will not lower the cost of the bill of materials at all. That is not going to help make the ultrabook a good investment for the first-tier manufacturers to develop. Add to that concern the fact that Intel's coming ultraportable Oak Trail platform, with paired Atom Z670 CPUs costs almost four times as much to produce as a Tegra 2 machine, even the discount that Intel refused is not going to make them attractive to sell.
"Intel's Oak Trail platform, paired Atom Z670 CPU (US$75) with SM35 chipsets (US$20) for tablet PC machine, is priced at US$95, already accounting for about 40% of the total cost of a tablet PC, even with a 70-80% discount, the platform is still far less attractive than Nvidia's Tegra 2 at around US$20. Although players such as Asustek Computer and Acer have launched models with the platform for the enterprise market, their machines' high price still significantly limit their sales, the sources noted.
As for Ultrabook CPUs, Intel is only willing to provide marketing subsides and 20% discount to the first-tier players, reducing the Core i7-2677 to US$317, Core i7-2637 to US$289 and Core i5-2557 to US$250.
As for Intel's insistence, the sources believe that Intel is concerned that once it agrees to reduce the price, the company may have difficulties to maintain gross margins in the 60% range and even after passing the crisis, the company may have difficulty in maintaining its pricing. Even with Intel able to maintain a high gross margin through its server platform, expecting Intel to drop CPU prices may be difficult to achieve, the sources added."
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Subject: General Tech, Systems | August 10, 2011 - 10:23 PM | Scott Michaud
Tagged: ultrabook, Intel
Intel has this little platform that they are attempting to push against the world known as the Ultrabook, a category of ultra-thin and light laptops that range 11-inch to 17-inch screens with high performance and high price. The actual cost of an Ultrabook is somewhat hotly debated between Intel and others. On the Intel side of the fence, the claim for the cost of parts in an Ultrabook range between $475 and $710; this bill of materials comes days after manufacturers discussed component costs around the $1000 mark. To further push the Ultrabook platform, Intel just released a statement announcing a $300 million fund to invest in technologies that further the Ultrabook platform.
Is Intel getting themselves into a jackpot?
Intel described their intents with the fund in this snippet from their press release:
Ultrabooks will deliver a highly responsive and secure experience in a thin, light and elegant design and at mainstream prices. To help realize that vision, the Intel Capital Ultrabook Fund aims to invest in companies building hardware and software technologies focused on enhancing how people interact with Ultrabooks such as through sensors and touch, achieving all day usage through longer battery life, enabling innovative physical designs and improved storage capacity. The overall goal of the fund, which will be invested over the next 3-4 years, is to create a cycle of innovation and system capabilities for this new and growing category of mobile devices.
It looks as though Intel is putting their money where their mouth is. While $300 million is not exactly huge in the scale of Intel revenue it is a substantial sum and equal (less inflation) to what they used to back Centrino over eight years ago. While their last investment went to subsidizing wireless access points, marketing, and similar programs this investment should be mostly focused on the technology itself -- both hardware and software -- with battery, input, and interface specifically mentioned. Part of me muses about Meego in terms of the Ultrabook platform potentially even as a supplement to Windows. We shall see what Intel has in store for the platform that could, and bludgeoned forward with heaps of raw cash when it could not.
Subject: General Tech | August 3, 2011 - 02:24 PM | Jeremy Hellstrom
Tagged: ultrabook, Intel
Look at that UX21 there, isn't it gorgeous? Only 1.1kg of brushed aluminium, fully kitted out with a new style lithium battery, is only 1.7cm thick and it has ASUS' Instant On technology which will boot you to desktop in 5 seconds. It was shown off as the shining example of what Intel's Ultrabook could be at this years CES and everyone who saw it loved it. It seemed that Intel was going to go straight to the core of Apple's ultra light market, not that their processors aren't already in Apple's MacBooks but it is nice to keep the PC partners happy as well.
DigiTimes has heard from a few manufacturers and are ready to add a large lead weight to the Ultrabook, the same weight that dragged down the CULV; namely price. When competing with Apple, the number one thing you need to do is beat them on price. You might be able to match their quality of design, or match them on the size of the notebook or even on the weight but the problem is that Apple was there first. Consumers know Apple's ultramobile platforms and have been using them for years, so if a newcomer tries stealing market share from Apple the only thing they cannot match is Apple's prices. The manufacturers that DigiTimes talked to placed the cost of the components they need to include to meet Intel's specfications are ~$1000, which is the market price of a lower end MacBook Air. Since businesses tend to like to make a bit of profit, as does everyone else in the supply chain, the cost of even a low end Ultrabook will be higher than an equivalent MacBook. Unless Intel is willing to drop prices, the Ultrabook will likely do even worse than the CULV, since at least the CULV had a mobile power user niche to crawl into and hide.
"While Intel is positioning ultrabook as a set of specifications to enable partners to design notebooks imitating MacBook Air, ultrabooks may encounter the same frustrations as CULV notebooks did if prices are not lower than those of the Air, according to sources from Taiwan-based supply chain makers.
The sources pointed out that Intel's ultrabook concept is not a brand new innovation, but a design to allow first-tier notebook players to quickly catch up with Apple's advances in the ultra-thin segment and help the notebook industry recover from the impact of tablet PCs.
Intel has been hosting conferences with the upstream notebook supply chain about its ultrabook since the second quarter and is providing suggestions and assistance in designing related components and methods for reducing costs. Ultrabooks will feature a similar design as MacBook Air and adopt li-polymer batteries, which will completely remove the device's capability of exchanging the battery, to significantly reduce weight, while the machine will adopt metal chassis for heat dissipation and a solid state drive (SSD).
In addition, all the components will be soldered on to the machine's PCB to save space and reduce weight, but the new methods will completely change the existing notebook production process of combining several modules together.
The sources pointed out that the new MacBook Airs are priced at about US$999-1,599 with rather strong demand in the US; however, designing an ultrabook based on Intel's technical suggestions will still be unable to reduce the machine's price level to lower than the MacBook Air's unless Intel is willing to reduce its prices, which already account for one-third of the total cost. If Intel does reduce its prices there is a chance for vendors to provide pricing below US$1,000."
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Subject: General Tech, Processors, Systems | July 10, 2011 - 02:45 AM | Scott Michaud
Tagged: Intel, ultrabook
Intel has been trying to push for a new classification of high-end, thin, and portable notebooks to offset the netbook flare-up of recent memory. Intel hopes that by the end of 2012, these “Ultrabooks” will comprise 40% of consumer notebook sales. What is the issue? They are expected to retail in the 1000$ range which is enough for consumers to buy a dual-core laptop with 4 GB of RAM and a tablet. Intel is not fazed by this and has even gone to the effort of offering money to companies wishing to develop these Ultrabooks; the OEMs are fazed, however, and even with Intel’s pressing there is only one, the ASUS UX21, slated to be released in September.
Asus sticking its neck out. (Video by Engadget)
For the launch, Intel created three processors based on the Sandy Bridge architecture: the i5-2557M, the i7-2637M, and the i7-2677M. At just 17 watts of power, these processors should do a lot on Intel’s end to support the branding of Ultrabooks having long battery life and an ultra-thin case given the lessened need for heat dissipation. Intel also has two upcoming Celeron processors which are likely the same ones we reported on two months ago. Intel has a lot to worry about when it comes to competition with their Ultrabook platform though; AMD will have products that appeal to a similar demographic for half the price and tablets might just eat up much of the rest of the market.
Do you have a need for a thousand dollar ultraportable laptop? Will a tablet not satisfy that need?
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Subject: General Tech, Mobile | July 4, 2011 - 12:02 PM | Jeremy Hellstrom
Tagged: Intel, culv, ultrabook, Ivy Bridge, sandy bridge, ultramobile
You can't really blame the failure of Intel's CULV form factor on just the name, though it is very awkward, since at the same time Intel was trying for that type of ultraportable we saw netbooks catch on. The netbook was easier to market than the CULV which was being trumped by the Macbook Air on one side and the surprising popularity of netbooks in general. Sure the Atom powered midgets couldn't do much, but they were just so cute.
We heard of the new Intel Ultrabooks at CES 2011 during Intel's keynote speech, and Ryan saw an example of one, the ASUS UX21 which sports a nice brushed aluminium shell. It was powered by a Sandy Bridge Core i7 and was 1.7cm at its widest and weighed only 1.1kg fully loaded, sported SATA 6Gb/s and can boot in 5 seconds with ASUS' Instant On feature. It should be available by September of this year and in theory will be a sub-$1000 Ultrabook.
DigiTimes today reported on Intel's plans for the release of their first Ultrabook and the future models, which they hope will together net Intel about 40% market share by the end of 2012. The strategy sounds familiar, those who remember what they did with the chipset for their Atom processor. DigiTimes reports that Intel is planning on "providing a significant budget to support its partners launching Ultrabooks". Now that is not very specific as to the support that Intel will be offering, but with Llano's decent performance and incredible price, it will be had for 1st tier vendors to be attracted to selling Ultrabooks that are faster but cost three times as much. Hence Intel's announcement about support for any vendors willing to build and sell their new form factor.
"Intel has recently started planning a new marketing strategy for its Ultrabook concept and has invested heavily into the related budget and resources hoping to attract first-tier notebook vendors into developing Ultrabooks, according to sources from downstream notebook players.
Due to the failure of Intel's Consumer Ultra Low Voltage-based (CULV-based) ultra-thin notebooks in 2009, while the notebook market has been severely impacted by tablet PCs, most notebook vendors are taking a conservative attitude toward Intel's Ultrabook concept and Intel is hoping its heavy investment will be able to attract these vendors to launch Ultrabook products, the sources noted.
Intel announced its Ultrabook concept in June with a goal of having 40% of the global consumers notebooks using its Ultrabook concept at the end of 2012. Asustek is already set to launch its first Ultrabook concept-based notebook, UX21, in September."
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Subject: Processors, Mobile, Shows and Expos | May 31, 2011 - 02:01 AM | Ryan Shrout
Tagged: ultrabook, Medfield, Ivy Bridge, Intel, haswell, computex, atom
With the release of the Intel Z68 chipset behind us by several weeks, Intel spent the opening keynote at Computex 2011 creating quite a buzz in the mobility section of the computing world. Intel’s Executive Vice President Sean Maloney took the stage on Tuesday and announced what Intel is calling a completely new category of mobile computer, the “Ultrabook”. A term coined by Intel directly, the Ultrabook will “marry the performance and capabilities of today’s laptops with tablet-like features and deliver a highly responsive and secure experience, in a thin, light and elegant design.”
If this photo looks familiar...see the similarity?
Intel is so confident in this new segment of the market that will fall between the tablet and notebook that they are predicting that by the time we reach the end of 2012 it will represent 40% of Intel’s processor shipments. That is an incredibly bold claim considering how massive and how dominate Intel is in the processor field. Intel plans to reach this 40% goal by addressing the Ultrabook market in three phases, the first of which will begin with ultra-low-power versions of today’s Sandy Bridge processors. Using this technology Maloney says we will see notebooks less than 0.8 inches thin and for under $1,000.
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