Tag: ultrabooks

Tablets, ultrabooks get cheaper and cheaper

tablet-womanAverage selling prices (ASPs) of Intel based ultrabooks and tablets fell by close to eight percent this year in all markets worldwide.

ABI Research said that household income needed to buy either a tablet or ultrabook fell by 30 percent during the year, giving access to many new households.

The market research company surveyed 22 different countries between 2013 and 2014 and estimates ASPs fell by 8.5 percent for tablets and 7.1 percent for ultrabooks.

The price drops mean a wider range of countries can now afford the gadgets and even though growth is falling for both types of devices, analyst Stephanie Van Vactor said “affordability could help prevent a drastic decline in sales”.

The affordability index is highest for the US, Japan and Germany, but some countries showed a marked decline in prices.  She said Chile, for example, saw a fall in prices of 56 percent for both ultrabooks and tablets.

But India saw an increase in prices of 22 percent for the devices.

Van Vactor estimates we’ll continue to see competition increase and that means prices will once again fall next year.

Intel ultrabooks face Apple threat

Intel-logoSamsung and Apple both have plans to release tablets with screen as large as 12 or 13 inches, putting further pressure on ultrabooks powered by Intel X86 processors.

Digitimes claims that the Apple unit will be made by Quanta with the likelihood that it will have a 12.9 inch screen, come out in October next year and will target the educational market.

Samsung, which is giving Apple a run for its money, is also rumoured to be releasing 12 or 13-inch tablets next year.

The same wire reports that Apple will introduce a large iPhone in May next year using a 20 nanometre microprocessor, with TSMC the foundry that has the win.

Mobile PC market in the doldrums

pc-sales-slumpThe mobile PC market has suffered its worst performance in 11 years, according to an IHS report.

Mobile PC shipments worldwide sank 6.9 percent compared to the first three months of the year, marking the first sequential decline since Q2 2002. Traditionally there has been growth in the second quarter, with the exception of 2002 and now, including last year where mobile PCs grabbed a 3.9 percent boost.

But analyst group IHS believes the poor results will spread beyond the second quarter. Taking the first half of 2013 overall, mobile PCs have had the worst performance since 2003 – with a 11.2 percent contraction compared to the same time last year.  This can be compared to a 41.7 percent surge as recently as 2010 to understand where the industry has found itself.

Ultrabooks have failed to woo consumers and, in the midst of global economic crisis, potential buyers are holding off on upgrading, even with price cuts and special offers from manufacturers.

“The mobile PC industry on the whole is struggling to find any momentum for growth as upheavals rock the market,” IHS compute analyst Craig Stice said. “In particular, more nimble devices like media tablets have taken over among consumers given their ease of use and unique form factor”.

IHS noted that innovation in mobile PCs has stagnated and low cost tablets have taken away further market share.

This all fits in nicely with the dominating narrative that the PC is dead, but this will not be the case. Although tablets are a far nicer experience for computing on the go or lazing around at home, it’s rather hard to get an essay done or other work finished on those devices. Instead PC makers will have to adapt and understand that the world is simply too out of pocket to justify upgrading to a new machine every couple of years. PCs have gone from being all in one devices to finding their niche in useful work or serious gaming. The rest can be done with a tablet or smartphone.

As IHS says, Intel’s Bay Trail and AMD’s Temash processors could inject some life into the market as PCs become lower cost, but higher performance and lower power. PC makers, IHS says, are “contemplating a new class of  performance PCs that would incorporate the new processors at affordable prices”.

There is still a current of hope for ultrathin devices, too, but Intel really put all its eggs in one basket when it arrogantly thought high cost Macbook Air knock-offs would fly off the shelf as the whole world got seriously more out of pocket.

“If a new low-cost PC offering strong performance can become available on the market and meet consumer expectations, then PCs could be set for more growth,” Stice said. “Not like the glory days of the 2000s, but growth nonetheless.”

Haswell notebooks head to retail channel

Intel-logoManufacturers are hoping that a new crop of notebooks based on Intel’s Haswell processors and Windows 8 can help them buck negative trends in the PC market. A torrent of announcements is expected at Taipei’s Computex next month and the first designs are ready and shipping.

The first Haswell-based notebooks have already shipped and they are expected to arrive in retail channels by the end of the month, which means we shouldn’t see many paper launches at Computex.

However, most vendors are playing it safe and they don’t appear to be placing huge orders. With the PC market contracting by double digits, one can hardly blame them for such caution. As a result, ODMs are expected to see little growth in May, but if vendors regain their confidence they could place more substantial orders in June and beyond. Digitimes reports that Quanta, Compal and Wistron all saw their shipments decline by 10 to 20 percent in April.

Intel is trying to rekindle interest in notebooks by issuing new design guidelines and trying to keep prices down. This is especially true of Ultrabooks, which failed to catch on due to their relatively high prices.

Intel is hoping to shave off a couple of hundred dollars from Ultrabook manufacturer suggested retail prices by the end of the year. In addition to new Haswell chips, a growing number of vendors are choosing to integrate touchscreens in their next-gen Ultrabooks.

It’s not just Intel’s skin on the line, either.

Microsoft is already taking a lot of flak over lacklustre Windows 8 sales, Nvidia is hoping to grow its discrete GPU market share on Haswell notebooks, Seagate and Western Digital have both rolled out Ultrabook friendly 5mm hard drives and hybrid drives and the list goes on.

With so much at stake, plenty of big players have a vested interest in helping Intel’s Haswell push, which offers some hope of good news for consumers as it should translate into better value for money.

Windows 8 gear set to get cheaper

pc-sales-slumpThe PC market is in the middle of its worst slump ever, but there might be some light at the end of the tunnel. PC makers believe prices of Windows 8 devices will fall dramatically in the not so distant future. 

On Wednesday Acer President Jim Wong said Microsoft is becoming increasingly considerate to its hardware partners and that it is finally starting to listen to their suggestions and ideas. Shifting the focus to cheaper products seems to have been the loudest suggestion. Wong also pointed out that touch enabled devices will open up a lot of possibilities for PCs, but he also warned that many simply don’t need touchscreens on their trusty PCs.

On the other hand, more touchscreens and mouth-watering price points could spell more competition in the cutthroat tablet market, dominated by Apple and Android gear. A number of manufacturers are already working on smaller Windows 8 tablets as well. The success of the iPad mini and even cheaper 7-inch ARMdroids did not go unnoticed, but it will take some effort to make Windows 8 truly competitive in this market, which is already becoming overcrowded.

First of all, Windows 8 is a bloated operating system by tablet standards. This means Windows 8 tablet designs need a lot more storage than their iOS or Android counterparts, which tends to drive the price a bit higher. Windows 8.1, or Windows Blue, could try to tackle this shortcoming. Secondly, they need very efficient x86 chips to be economically feasible, but upcoming x86 SoC designs from Intel and AMD should go a long way towards addressing this issue. Finally, Redmond has to cut Windows 8 prices, plain and simple.

However, Asus CEO Jerry Shen warns that there is no quick fix for Microsoft’s tablet woes. Windows 8 tablets are quite a bit pricier than their Android counterparts and they cost at least $150 more. Shen believes the price gap could narrow to about $50 this year, which should considerably improve Microsoft’s competitiveness.

Acer Chairman J.T. Wang said Microsoft’s willingness to adapt to change is a good sign for the PC industry, reports the Wall Street Journal.  He was rather blunt about it, too.

“In the past we consider they (Microsoft) live in heaven,” he said. “But now they go down to earth and they start to learn how people living on earth think.”

Although tablets are generating all the buzz lately, there are some changes on the PC front as well. An increasing number of all-in-ones and more powerful mini-PCs are hitting the market. Ultrabooks sales are still failing to impress, but there is some good news to report on the notebook front as well. Prices of Ivy Bridge notebooks are seeing double-digit cuts, as Intel partners gear up to introduce Haswell-based models over the next few months.

Microsoft cuts the price of Ultrabooks

msSoftware giant Microsoft has twigged that Intel’s dream of Ultrabooks is not proving that successful.

Redmond has been slashing the price of its Touch ultrabooks at the Microsoft Store with the Acer Aspire S7 losing about $300, falling to $1,299 from $1,649. .

There was nothing wrong with the Acer Aspire S7 and it was well reviewed, it is just that no one wants Ultrabooks as much as Intel told the world that they did and certainly not for $1,649.

Perhaps the key to the problem is still the spec. The $1,649 price tag strikes as a lot to pay for something with a 1.9GHz Intel Core i7-3517U processor. A laptop might be heavier but it does more and a lot faster.

CNet  found another one discounted by Vole was the Sony’s Vaio T Series 13 has been reduced to $999 from $1,299 with its 2GHz Core i7-3537U processor that model is a little faster.

And the lower-end of Ultrabook land 0 the Vaio T Series has been cut to $799 from $899 and HP’s Pavilion TouchSmart Sleekbook is now $599, reduced from $699.

To be fair it is not just Intel’s Ultrabook dream which has seen some cost cutting. Microsoft has also been reducing the price on some of its tablets. Some are as cheap as $399.

Notebook shipments in Q2 to remain weak

notebooksIncreasing demand for tablets, coupled with weak demand from China, is expected to hit notebook shipments in the second quarter.

According to Barclays Capital, global shipments will tumble 17 per cent from Q4 2012, traditionally the strongest quarter for notebook shipments. Notebook sales in Q2 usually grow by about 6 per cent, but Barclays believes shipments will grow only 4 per cent this year. Yang attributed the decline in demand from China to the ever increasing demand for tablets.

Barclays analyst Kirk Yang believes the weaker than expected growth also reflects delays in the introduction of new models. Both Intel and AMD are about to introduce new mobile processors and a new generation of touch enabled Ultrabooks is also on the way.

Taipei Times reports that Quanta, the world’s leading notebook ODM, is simply not receiving many orders. International brands are reluctant to place large orders, as better gear is just around the corner.

The really bad news is that things will not pick up anytime soon. Weak demand will plague the market well into the fourth quarter of 2013.

There are some technical challenges as well. Next generation hybrids and convertibles aren’t making much of an impact on the market yet. A shortage of touchscreen panels means that the production of touch enabled notebooks won’t pick up until later this year, which will roughly coincide with the rollout of new Intel mobile chips. SSDs remain prohibitively expensive for some market segments and they are still reserved for quite pricey SKUs. The same goes for high definition 1080p screens in sub 14-inch market.

In other words, consumers who don’t opt for high end devices really don’t have much of an incentive to upgrade.

Intel forced to take axe to Ultrabook prices

titanicThe writing was on the wall for Intel-based Ultrabooks well over a year ago.

Overpriced, underwhelming, and facing massive competition from tablets and smartphones and trends such as bring your own device (BYOD), few families would take the risk of spending over $1,000 to have a bright shiny Ultrabook and keeping an eye on jobs and the general economic situation, large corporations weren’t going to splash the cash either.

So the news that Ultrabooks are set to cost far less for the holiday season this year is probably a case of too little too late. It also begs a number of questions about Intel’s business model which remain to be resolved.

Intel’s phenomenal growth was due, in a large part, to the monopolistic hold it had on the PC industry.  True, AMD was around to mitigate that, but it was only in the days of the AMD Opteron that Intel was forced to react.  Because it holds such a large X86 market share, that meant that the revenues from sales of its microprocessors allowed it to finance developing the next generation of its CPUs.  Building fabs is not a trivial matter and involves billions of dollars of investment.  Intel could afford to do this because during its so-called “tick tock” cycle, it was able to maximise profits on its current generation of semiconductors, while developing its next generation.

However, this continual growth could never be guaranteed, and disruptive technology, in the shape of tablets and smartphones, meant that given a choice, lots of people preferred to pay far less for tablets and smartphones rather than go for Ultrabooks at $1,000 plus.

And with this we come to applications and the realm of the other great X86 monopolist, Microsoft.  It’s certainly true that typing on a smartphone or a tablet is not nearly as convenient as using a conventional keyboard.  And if you are into solid beancounting, you’ll certainly need a sophisticated spreadsheet to manipulate the numbers.  Despite the now decades long promise of the paperless office, people still print stuff.  Microsoft, with Windows 8 and its tablet ready interface is too expensive.  It, like Intel, has lost its grip on the electronics market.

There’s another factor to consider, too.  Right now, Intel is in an interregnum period.  Paul Otellini, the current CEO, is due to leave at the end of May.  Intel is actively recruiting for another CEO, but that means, in the short term, that no-one is going to make huge company wide decisions.

In truth, it’s hard for me, as a seasoned Intel watcher, to see quite what rabbit the new Intel CEO, whoever she or he might be, might pull out of the corporate top hat.  Intel has been in fixes before, and because of its size and its sway can never be underestimated.  But it’s hard to see it making very much more than a ripple in the smartphone and tablet market, leaving it between a ROC and a hard place. It’s also hard to see where the complex supply chain it generates is going to end up, too.

Intel Ultrabooks are the “Titanic of the 21st Century”

Der Untergang der TitanicResellers have lit into Intel Ultrabooks likening the range to the “the Titanic of the 21st Century,” and calling the products a “sinking expense.”

The comments come as resellers are still seeing bleak sales  for  these products, with some saying they can’t see a light at the end of the dismal tunnel.

Intel’s slim line babies had been touted as a lighter way to work, however, according to recent research by IDC, the company’s emphasis on its skinny form factor did it no favours as the price tag is still sky high.

However, it seems the stubbornness of the company, and its reluctance to cut prices, have angered resellers.

“Ultrabooks have really been the Titanic of the 21st Century. A disaster, and sinking expense,” one told ChannelEye today.

“It seems to me that whatever Intel does, and however much it throws at this brand, it’s just not going to take off unless it reduces prices for these ranges significantly.

“However what we’ve heard from the company hints that this isn’t going to happen, meaning we’ll once again be left with surplus stock and low margins as a result.”

Others agreed, claiming that the price point was the thorn in Intel’s side.

“Ultrabooks still aren’t doing as well as we would have liked. No one wants an overpriced laptop at the moment and the slim USP it’s got going on just isn’t attracting consumers,” another reseller told ChannelEye.

“There are cheaper, but bigger laptops that offer similar features that just make purchases more justified.”

Others have also pointed out that although the company could cash in on the upcoming holidays, consumers again would be reluctant to opt for this product with tablets offering a better price point.

“We’re hoping to see a rise in Ultrabook sales as the summer holidays come around, but it’s market. Some families who are going away will be looking for a light device that can keep kids occupied on a plane as well as act as a virtual mag/book.

“Although an Ultrabook would be perfect for this, the reality is the price points will push many to a tablet,” he added.

New generation Intel ultrabooks set to drive SSD growth this year

ssdA new wave of low-cost and attractive Ultrabooks could help double shipments of solid-state drives (SSDs) this year, IHS iSuppli has said.

According to the analyst company’s Storage Space Market Brief worldwide SSD shipments are set to rise to 83 million units this year, up from 39 million in 2012.

Shipments are set to continue to rise 239 million units in 2016, which the company said amounted to around 40 percent of the size of the hard disk drive (HDD) market.

SSDs can serve as an alternative to hard disk drives in personal computers and work by storing data using NAND flash memory semiconductors rather than through traditional rotating media.

In its report, IHS looked at traditional solid state drives in both the consumer and enterprise segments, as well as cache SSDs that along with an HDD component make up a composite storage products such as those found in Intel’s Ultrabooks.

The company said that Ultrabooks had played a part in the slump of SSDs last year. It said that despite SSD shipments rising by 124 percent, growth  had fallen short of expectations because sales faltered – due to poor marketing, high prices and a lack of appealing features.

It said the future depended on the new generation of Ultrabooks, which if, as predicted, take off this year, will see the SSD market growing at robust levels.

Intel, which has been plagued by poor Ultrabook sales despite all of its bluster, is still trying to break into the market, introducing a new range loaded with Windows 8 and Haswell microprocessor architecture.

However, other factors are also involved when it comes to the SSD market, with IHS pointing out that average selling prices for NAND flash memory have come down, in the process establishing new price expectations.

The lower prices are attracting deal-seeking consumer enthusiasts, as well as an increasing number of PC manufacturers that are now more willing to install the once-costly drives into computers.

Over in the enterprise sector, SSD use is also growing as a result of product introductions from major vendors and startups.