In a note to clients — as reported by “CNET,” J.P. Morgan analyst Mark Moskowitzsays that MacBook Air will generate huge sales and retain its dominant market share despite the growing onslaught of rival ultrabooks (although Apple doesn’t call the Air an ultrabook).

“Ultrabooks are not a competitive threat, yet,” he said. “In general, we think that Ultrabooks are highly-discretionary devices, and pricing on competitive offerings must fall below $800 before posing a viable threat to Apple’s MacBook Air.”

Moskowitz says the Apple device’s features, form factor, and early launch into the ultrabook market will continue to attract Apple enthusiasts and other users. “In contrast, we think that the first round of ultrabook offerings lacks the right blend of features and attractive price points to grab market share from Apple,” the analyst added.

In previous reports. J.P. Morgan had predicted the MacBook Air as potentially generating sales of US$2 billion to $3 billion. However, in light of the laptop’s continued momentum, the firm is now eyeing sales as high as $7 billion over the next 12 months, or around 1.6 million units each quarter.

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