The $3,000 Laptop No One Needs

Apple Inc’s (NASDAQ: AAPL) new Macbook Pro can cost as much as $2,299 with a 17 inch monitor. That is not with  additions that can push the price to more than $3,000. The computer uses Intel Corporation’s (NASDAQ: INTC) new quad core i5 chip. The chip allows users to have a super fast machine that can do many tasks simultaneously.

Dell Inc. (NASDAQ: DELL) and Hewlett-Packard Company (NYSE: HPQ) also market new PCs for as much as $3,500 with the i5.

The new superfast laptops may be well beyond what even the most demanding consumer needs unless it is being used for high-end gaming or CAD-CAM applications. Both of those user populations are small.

The laptop may simply be becoming too powerful at the high-end of the product spectrum, just as it did with desktops. And, the new machines may sell very poorly, ironically, because less expensive machine with new dual core processors are faster and more powerful than they were even six months ago. The price of these dual core laptops can be under $1,000.

Intel has begun to work itself out of the computer space since consumers already have PCs and laptops which perform a wide range of functions quickly. That may be why a growing part of Intel sales are in the mobile market, according to the company’s quarterly earnings. The chips on smartphones are underpowered compared to laptops and even netbooks. Intel has to find a large new market to maintain its sales growth. But, it is entering an already-crowded area with several established companies, a market it does not dominate like it does the PC sector. Texas Instruments Incorporated (NYSE:TXN), QUALCOMM Incorporated (NASDAQ: QCOM), and Broadcom Corp (NASDAQ:BRCM) are waiting for Intel, but it is not with open arms.

Douglas A. McIntyre