Intel pushing ultrabooks but who will buy?

Intel Corp. is determined to turn 2012 into the year of the ultrabook, but who's buying?

The supplier known for emphasizing its tech specs (supertiny transistors in superfast microprocessors) is pushing personality at this year's International Consumer Electronics Show, which runs through Friday and is closed to the public.

"The devices themselves are less relevant," Intel Chief Executive Officer Paul Otellini said during his Tuesday night keynote speech. "The question is: Are we creating a better experience?"

That's where the ultrabook comes in. Ultrabooks are sleek, less than 18 millimeters thick, with flash drives rather than traditional optical drives.

Intel first announced its ultrabook push last May. There are 12 models now on the market, and 30 to 50 new ultrabooks are expected to debut at CES this week.

Dell on Tuesday announced its contribution to the ultrabook category with the XPS 13, which is 6 millimeters at its thinnest point.

Some of the 75 designs now in the works also have features like sliding cases, to transform from ultrabook to tablet, voice recognition and anti-theft measures that allow online shoppers to tap their credit cards to their computers to authenticate transactions.

Those features are not standard with every ultrabook.

Intel's goal for this year is create a new category of computer, a product people don't yet realize they need, the way Apple did with the iPad.

Steve Bambridge, business director of global market research firm GfK Boutique Research, said in preshow remarks Sunday that ultrabooks account for less than 1 percent of the consumer electronics market. The category's highest concentration is in Japan, where penetration is about 3 percent to 4 percent.

"This is going to be a big test for 2012 as to whether the ultrabook can catch on," Bambridge said. "So far, it hasn't made a big impact."

Intel in April plans to unveil a "very epic, very cinematic" ad campaign that heralds a "new era" in computing, said Intel's Kevin Sellers, vice president of advertising and digital marketing.

"People don't buy processors. They buy experiences," Sellers said. "Ultrabook to us is not a thin and light PC. It's going to deliver a set of experiences that today you cannot have."

Sellers said the ultrabook push will be Intel's largest ad blitz since the Centrino in 2003.

Intel on Tuesday also announced a partnership with Black Eyed Peas rapper will.i.am called the Ultrabook Project. The hip-hop star will travel to 12 cities around the world, record a song on his ultrabook based on the city, then upload it to Intel's site.

History has proved that advertising can create demand where none existed. But the price of an ultrabook may be too high for consumers who already have one or two computers in their homes.

Apple's Macbook Air, which popularized the supersleek style that now exemplifies the ultrabook category, starts at $999, and its PC competitors, like the Toshiba Protégé Z830 series on display at CES this week, are also in that range.

Intel launched a $300 million fund to drive prices down to mainstream levels. The company has also persuaded its largest manufacturing partners to jump on board, which will bring prices further down.

Contact reporter Caitlin McGarry at cmcgarry@reviewjournal.com or 702-387-5273.