Currently, the cheapest MacBook air sells for $999. However, if the folks at DigiTimes are correct, then we could be seeing a $799 MacBook Air as soon as the third quarter. Of course, the report cites the usual "sources from the upstream supply chain" so I would treat this rumor with a dose of skepticism until more is known.
The more aggressively priced MacBook Air could put the squeeze on Ultrabooks. This is especially true if Intel is unable to bring prices down to the $699 average selling price like they would like to. Sources are saying that Ultrabooks may not really take off until Windows 8 launches later this year.
Dell's XPS 13 Ultrabook sales, however, are painting a slightly better picture for Ultrabooks. Sales on their machine are way past expectations. This could mean that the market is ready to take off, or Dell could have just created a great product. Another rumor is that Apple could introduce a hybrid laptop with the power of the MacBook Pro and portability of the Air. This is according to KGI Securities analyst Ming-Chi Kuo.