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Computex 2012: Intel pushing ultrabooks in both mainstream and emerging markets

To accelerate the penetration of its second-generation ultrabook, Intel has come up with a plan to promote the machines in emerging markets.

ub_computex12 In addition to its partnerships with first-tier notebook brand vendors to launch new ultrabook models in mainstream markets, Intel is also running a program, internally called the Mega ID Sharing plan, to help connect notebook ODMs Pegatron Technology, Elitegroup Computer Systems (ECS) and Shuttle with regional brand vendors to push mid-range and entry-level ultrabooks in emerging markets such as Brazil, India and Turkey, according to sources from the upstream supply chain.

The regional brand vendors included in Intel's program can give their ultrabook orders to one of the three designated ODMs. Because these ultrabooks will mainly target the mid-range and entry-level price segments, Intel is also teaming up with several China- and Taiwan-based small upstream suppliers to allow the regional brand vendors to source lower-price components, the sources noted.

The sources pointed out that the notebook ODMs have all recently received ultrabook orders from emerging markets. Pegatron has received orders from Brazil's Positivo; ECS has established partnerships with vendors from South America and has received orders from Europe's Arcelik; and Shuttle is also cooperating with Brazil's Megaware, the sources said.

Intel is expected to continue investing money and other resources to accelerate the notebook industry's development of ultrabook products. In addition to its US$300 million ultrabook fund, Intel will also provide assistance to its downstream partners to develop innovative hardware, software, battery technology and designs of devices, the sources said.

Intel's internally estimates that ultrabook shipments will reach 20-30 million units in 2012 and as the upstream supply chain for ultrabooks will be better integrated next year, ultrabook shipments in 2013 will double or even triple, the sources said.

Despite the debt crisis in Europe and the weak economy in the United States, notebook makers said demand in China and other emerging markets has been better than that in those two mature markets. Intel remains confident in demand for low-price ultrabooks in the emerging markets.

In a recent interview, Gregory Bryant, VP of sales and marketing group and general manager of Intel Asia-Pacific Region, told Digitimes that the company expects ultrabooks to hit mainstream price points by the end of 2012. Ultrabook prices will range from US$699-1,199 in 2012, he said.

With the first generation of ultrabooks, Intel saw a number of systems come to market at different price points, and it expects that to continue as the second generation of ultrabooks, based on the third generation Intel Core processor family, come to market throughout 2012, he added.

The Intel VP noted that Asia-Pacific is now at the forefront of global technology growth and innovation. There is growing demand for computing devices of all kinds across emerging markets in Asia-Pacific, driven by robust economic growth and a rising middle class, he said.

Emerging markets, such as Indonesia and India, will account for most worldwide growth in the PC market over the next few years, he added.

Source: DigiTimes