Wow, that would be an agressive price point alright. Perhaps what everyone is struggling with here is that Intel needs higher prices just to stay afloat. So perhaps, by inference, Intel should maybe be looking at changing its busness model entirely? To one of developing IP?
As to the repeated comment that PC sales "will never recover," please refer to the Windows 8.1 article in today's EE Times. It's only a matter of semantics. People need to broaden their perspective on what they call a PC, that's all. In the article on Win 8.1, check out how college students use Win8 "tablets," connected to a docking station, to do all their real work.
As Rick & Frank pointed out, a 200$ ultrabook with windows will be severely under performing device. whats the point of having such a device?
On top of that, why would Intel want to build such a device? to kill their 200$ CPU business with 20$ CPU business?
It's a good thing Android doesn't rely on Intel and x86 chips at all, so it won't matter if Intel can do it or not. ARM chip makers will do it, and have already done it (hello Samsung Chromebook! - granted it's not Android, but same thing)
$200 seems quite an aggressive target for an ultrathin mobile PC. Instead, perhaps they should focus first on making those new generation notebooks roughly the same price as a tablet. I also agree with Rick that IHS's BoM seems very basic, and that most users will demand a more powerful and more full-featured machine.
Is that chart listing the manufacturer's cost for those components or what would be a retail (to the customer) price for the components? If it's manufacturer's cost, that's a $600 - $800 retail device.
That said, I would think that a $200 retail laptop of sorts is quite possible. Looking at retail purchasable products, a PC can be put together at around the price point you're looking at. The compromises would need to be in the mechanics and the software.
With something like the Raspberry Pi at the heart, the OS would need to be thinned out a bit in order to get an acceptable level of performance for household tasks. In my opinion, the biggest problem with the first generation of net-books was the OS overhead. Take care of that and it's viable. Don't and it's not.
An interesting concept, but the Ultrabook to date has been more a premium product Intel is trying to cost reduce to mainstream markets.
The performance and peripheral set at the IHS BoM would not make for a very interesting user experience.
Even Google's Chromebook Pixel which removes the Windows OS tax and a hard drive still sells for $1,200-$1,500 for a premium Web experience.