Nokia entering the Netbook market – with Windows (as per announcement)

Nokia announced the launch of their Netbook – with 3G features- which further shows the convergence of the 2 technologies- Laptops moving downwards in the technology curve (the Netbooks were the first step in that direction) – and the Mobile phone moving up (Smartphones et al).

This could be the exciting first generation laptops with advanced 3G features coming from a company that makes phones (unlike Netbooks coming from companies that make computers). 

Here is a great video of the same! Have a look- I like the super cool finish & the typical Nokia touch for the ad.

The Booklet 3G should run for up to 12 hours on one battery charge, Nokia said. It weighs 1.25 kilograms, has an aluminum chassis and is slightly more than 2 centimeters think.

The device also has a 10-inch screen, and can connect to bigger displays using an HDMI port, according to Nokia. Like most other netbooks on the market, it contains an Intel Atom processor and will run Windows -- although Nokia isn't yet ready to say which version of the OS. <http://www.pcworld.com/businesscenter/article/170655/nokia_enters_the_netbook_market_with_the_booklet_3g.html>

More on this - "We are fully aware what has the margin level been in the PC world. We have gone into this with our eyes wide open," Kai Oistamo, the head of Nokia's phone unit, told Reuters.

"There's really an opportunity to bring fresh perspective to the PC world," he said, adding that Nokia would introduce extended battery life and continuous connectivity. 

The Nokia Booklet 3G, will use Microsoft's Windows software and Intel's Atom processor to offer up to 12 hours of battery life while weighing 1.25 kilograms.

Why? Research firm IDC expects netbook shipments this year to grow more than 127 percent from 2008 to over 26 million units, outperforming the overall PC market that is expected to remain flat and a phone market which is shrinking some 10 percent.

Will it do well? I believe so.

With the Brand Name, the marketing muscle, the distribution channel in place, it could be the best combination possible. However, the price will play a critical part.. and that in the end could make all the difference.

Netbooks – Primer and Pricing Trends

Netbooks – 18 months ago, one did not even know about this word – let alone having this as a family of laptops!  Today, this is the fastest growing market segment within the PC Industry.  Players who shunned this market, are making a beeline for this segment and get a slice of the pie – before it is too late!

Super quick primer-

Netbooks are for -

1. users who are looking for their Nth PC  – chances are he is scouting around for a “low cost” entry Level Laptop!
2. a user for who is looking at a PC with basic features- and a “mobile” home notebook.
3. a user who does not want to spend another $1000 for a laptop- which gets outdated the next day!

Netbooks do not come with any fancy gadgets or tools… they are more positioned as a really “personalized” notebooks at a super affordable costs.

- Atom processors from Intel are the defacto drivers of this product.

- More than 90% of the Netbooks sold run on Windows XP – and no- I am NOT making this up.  Data (shown below for you non-believers) show that the cost of a Netbook with XP is actually cheaper than that of a Netbook with some version of Linux.  And one is not talking of the ubiquitous “Cost of Ownership” that has been killed by most companies!

Netbooks are the future of computing- and in my personal opinion (Intel and Microsoft have made this possible).  Intel with their Atom Processor that created a new market altogether (this has to rate as one of the biggest marketing case studies). Microsoft with their adaptation of the OS – which is now the default in most Netbooks.

Here is some information that I found that is pretty interesting!

DealWatch: Price trends on Netbooks - dealnews.com-http://dealnews.com/features/Deal-Watch-Price-trends-on-Netbooks/292489.html?page=2

Compare the price with the Linux devices (though the pricing is not an apple to apple- the HDD option with XP actually gives a much better customer satisfaction with storage space than that of the SSD users. (Solid State Device).

DealWatch: Price trends on Netbooks - dealnews.com -http://dealnews.com/features/Deal-Watch-Price-trends-on-Netbooks/292489.html

Food for thought… How is it impacting some companies? Here is a nice article on what is happening to HP…an article from Bloomberg!