Ultrabooks Sales Heading Towards a Downfall – Will a Price Cut Boost Sales?
US based global analysis organization IHS has put forward a predictive statement which analyses ultrabook sales to be on the verge of decline in 2012. There has been a sharp decrease in ultrabook shipments from 22 million to 10.3 million units for the current year. The sheer drop in sales could however be inaccurate according to some industry experts who find more faults with iSuppli’s forecast.
One of the previous statements released from IHS showed a stupendous growth percentage for ultrabooks predicting a whooping 73 million sales in the next year (2013) which was to shoot up to 181 million by 2016. The statement which showed ultrabooks as the budding technological innovation for future is now but a clear contradiction. The reason for this sharp decline could be diverse. Nevertheless, it would not be too wrong to infer that the economic downturn in US and Europe has led to the decline in sales, to some extent.
The high price range of ultrabooks, majorly starting from $1000 has failed to entice a large number of buyers. A press release issued by IHS suggests that the average price tag of ultrabooks should drop to $600 to boost up sales. Improper advertising has also been responsible in influencing the unpopularity of ultrabooks by one of the company officials. Is price cut the ultimate solution?
Experts predict that a price slash would inevitably make ultrabooks more popular among the masses. Over the last decade, the industry has witnessed continuous growth in the sale of laptops which has is arguably been driven by a consistent decrease in price.
From the processor’s perspective, the industry is dominated by Intel with its market capture hovering around 60%. Tech reviewers opine that Intel need not consider price cut as a factor to boost ultrabook sales as it would invariably be wasted. Intel ships a wide range of processors. However, the chip maker need not cut down the prices of high end processors to make them affordable for the masses. The AMD processor was made available to meet this particular end.
When it comes to ultrabooks, the first reaction of the masses is directed towards the high price. That is however somewhat debatable for the high margin, low-volume product line of ultrabooks. Currently, the high end ultrabooks are powered by Intel processors while the budget friendly ones run on AMD chips. Some critics feel that this divided approach is the best solution for ultrathin machines rather than one chip maker taking care of all the devices.
PC manufacturers get into mutual wars with price as the only weapon. This has lead to mass popularity of computers around the globe. Most people using computers for general tasks look at the price factor before short listing a device. However, cutting edge technology continues to remain the product is made budget friendly, it tends to compromise on some of the key features that retards the popularity of the machine.
Manufacturers selling high end products cater to a limited market. Looking at PC experience as something more immense, it can be inferred that the top notch products have limited contribution towards it.
Price cut may be considered as a temporary solution towards popularizing ultrabooks. Technology would keep improving, a factor which would oppose reasonable prices at some point of time. Experts feel that PC manufacturers need to work the way up to make ultrabooks more appealing to people. Instead of lowering the price, the new generation machines should be equipped with more features and functionalities to make them better value for money. This could be a prospective solution for increasing ultrabook sales in the years to come.