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Ultrabooks continue to face a major uphill battle against smartphones and tablets, according to new research from industry analysts IHS iSuppli.
In a report issued Monday, iSuppli slashed its 2012 Ultrabook sales forecast by more than half, projecting approximately 10.3 million units to ship by the end of the year, compared to the 22 million it originally forecasted. The firm also revised its forecast for 2013, saying it expects nearly 44 million Ultrabooks to ship, rather than the 61 million it originally projected.
Lower-than-expected Ultrabook sales were partially attributed to price points that are still too high to lure customers away from other mobile devices, such as tablets. According to iSuppli, Ultrabook price tags need to drop from the $1,000 level many are at now to the more modest $600 range in order for sales to truly take off.
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"With the economy languishing, ultrabook sellers may have trouble finding buyers at the current pricing, especially with fierce competition from new mobile computing gadgets such as the iPhone 5, Kindle Fire HD and forthcoming Microsoft Surface," said Craig Stice, senior principal analyst for compute platforms at HIS, in a statement in Monday's report.
iSuppli noted that a price drop, coupled with the debut of Microsoft's upcoming Windows 8 and new touch capabilities, could give Ultrabooks a boost among consumers. But if Ultrabooks primarily stay at the $1,000 price point where they are today, sales will continue to lag.
Intel, the chip maker responsible for spearheading the Ultrabook movement, has already expressed plans to lower Ultrabook prices. In a recent interview with CRN, Karen Regis, director of Ultrabook marketing within Intel's PC Client group, said that the $699 price point, in particular, will become more common over the coming months.
"We projected that OEMs will be able to hit entry-system price point of $699 by the holidays. And I think the reports that I have read and stuff that I have seen on online retail, there are multiple systems now being offered at that price point, and it's not just one or two," Regis said. "So $699, yes, it's doable."
But, hefty price tags weren't the only hindrance to Ultrabook sales identified by iSuppli. The firm also attributed its lowered sales outlook to a "lack of effective marketing" around Ultrabooks, a trend that has been plaguing the traditional PC industry as a whole.
"There once was a time when everyone knew the 'Dude you’re getting a Dell' slogan. Nowadays no one can remember a tag line for a new PC product, including for any single ultrabook," Stice said. "So far, the PC industry has failed to create the kind of buzz and excitement among consumers that is required to propel ultrabooks into the mainstream."
NEXT: Will New Ultrabook Features Spur Growth?
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