Ultrabooks Falling Extremely Short of Expectations, Not Selling Like They Should

Ultrabook computerAccording to a recent report, worldwide Ultrabook shipments are falling short, extremely short actually, of what they were expected to be. In a forecast earlier in the year, IHS iSuppli stated that 22 million Ultrabooks would be sold this year. Well, the year is ending in a little over a month and the analyst has lowered its forecast, saying that the industry is currently on pace to ship only 10.3 million Ultrabooks worldwide.

Unfortunately, the bad news doesn’t stop there. The earlier projection for 61 million global shipments in 2013 has also been reduced to only 44 million. According to Senior Principal Analyst at IHS Craig Stice, “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. This is especially a problem amid all the hype surrounding media tablets and smartphones. When combined with other factors, including prohibitively high pricing, this means that Ultrabook sales will not meet expectations in 2012.”

Even though there are severe challenges to overcome from the interest in smartphones and tablets, IHS foresees improved growth in the Ultrabook market. The market may not reach earlier expectations in 2013, though it is still projected to show a 300% increase over this year.

“Growth is also expected to continue for the foreseeable future, with shipments expanding to 95 million units by 2016,” IHS noted. “This will drive long-term growth for devices used in Ultrabooks, including motion sensors.

PC makers have put a lot of faith in to Ultrabooks to revitalize the ailing market. Lenovo, which recently took the number two spot in worldwide PC sales, said this spring that it planned to push Ultrabooks in its effort to make it to the number one spot, which is currently held by HP. According to Lenovo, “We’re confident that this is going to grow our business.”

According to Stice, Ultrabook makers need to lower prices if they want to sell more product. He believes that prices need to drop from the $1,000 range to about the $600 range in order for sales to build up enough to catch the mainstream market.

“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.”

Source: Computer World – Ultrabook sales fall short of expectations

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