Hewlett-Packard launched the Envy Sleekbook, based on AMD's Trinity accelerated processing unit. The Sleekbook is a thin, light laptop similar to an Ultrabook; however Ultrabooks are powered by Intel (INTC) chips. Prices for the Envy Sleekbook start at $599, versus a $749 starting price for Envy Ultrabooks powered by Intel.
Canaccord Genuity Technology Analyst Bobby Burleson notes that Ultrabook penetration could be constrained in 2012 due to high price points (Intel saying 40% exiting 2012, he thinks 25% is optimistic). Burleson believes this announcement and others likely to follow throughout Q2 will keep investor focus on AMD's ASP and share gain opportunities, rather than concerns over the PC market.
Further, AMD has conservative expectations for PC growth in 2012 when compared to Intel's (mid-single-digit versus high-single-digit, respectively), and Burleson sees risk to Intel's view as HDD-related PC replenishment may run its course in Q2. Intel expects replenishment to help drive sales in Q3.
Hewlett-Packard (HPQ : NYSE : US$23.51), Net Change: 0.18, % Change: 0.77%, Volume: 16,016,645 Advanced Micro Devices (AMD : NYSE : US$6.78), Net Change: -0.08, % Change: -1.17%, Volume: 26,498,739