Would a $799 MacBook Air crush the ultrabook market?

Apple may reportedly begin selling a more affordable version of its entry-level notebook to compete with upcoming ultra-thin Windows 8 laptops

Rumor has it that Apple may release a MacBook Air at $799, though some suspect the company is just be planning to reduce the price of an older Air model.
(Image credit: AP Photo/Tony Avelar)

Apple's gorgeous, high-end consumer gadgets have developed a rabid following, and if recent earnings are any indication, the company's reluctance to offer consumers affordably priced options has paid off handsomely. So counterintuitively, a new report from technology news site Digitimes claims that the company is on the verge of releasing a $799 MacBook Air, citing anonymous sources in Apple's "upstream supply chain." That's $200 cheaper than the company's current entry-level portable, and could effectively eliminate the cost advantage of "ultrabooks" — lighter, thinner laptops made by rivals like ASUS, Intel, and Sony. Would ultrabooks stand a chance if the MacBook Air slashed its price?

This would be a huge blow to ultrabooks: Ultrabook sales are already underwhelming, says Matt Peckham at TIME, partly because of the proliferation of tablets like the iPad. Plus, smart consumers may be waiting for the fall release of Windows 8 before jumping aboard the ultrabook bandwagon. But if Apple gets the jump and releases a $799 MacBook Air with a battery-saving Ivy Bridge processor? "All bets are off."

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