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Monday, 05/07/2012 2:10:55 PM

Monday, May 07, 2012 2:10:55 PM

Post# of 151836
If true, finally Ultrabooks lower prices are going to ignite this market. Apple lower price will also improve sales of MacBook air as well.
I doubt it as Apple has never competed on price only.
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The following is some point/counterpoint on Apple (Nasdaq: AAPL) following rumors on the MacBook Monday.
According to Digitimes, Apple's MacBook Air will begin being priced starting from $799 during the third quarter of this year. The price is a 20 percent discount to the current entry level MacBook Air's $999 tag.
Citing upstream suppliers on the news, Digitimes noted the move may be to combat Intel's (Nasdaq: INTC) efforts for greater ultrabook adoption. Sources said Intel's strong push might have ultrabooks price at about $699 in the latter half of 2012. Amid Intel setting aside hundreds of millions for promotion, Digitimes' sources don't believe ultrabook sales will really pick up until the launch of Microsoft's (Nasdaq: MSFT) Windows 8.
There's a point...here's a counterpoint: since when does Apple aim to compete on price?
Apple really never budged on the price of its iPad, only discounting the iPad 2 following the introduction of the new iPad because the iPad 2 is still a superior device to many Google (Nasdaq: GOOG) Android-based tablets and continuing to sell them makes sense. Further, Apple has kept pricing on its products constant with few discounts ever offered.
Whether the move -- which isn't official yet -- indicates Apple's anticipation of consumers becoming more price-conscious or ultrabook offerings being a more formidable competitors is yet to be seen. Regardless, a drop in prices could lead to margin compression and slower profit growth.
MacBook sales have moved from 2.75 million units in Apple's second quarter of 2011 to 3.72 million in the first quarter of 2012 and 2.82 million in the latest quarter. Despite the pop in sales for last year's holiday season, MacBook sales generally hover around 2.8 million units each quarter.
Apple shares are about flat Monday morning.
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