Nokia gamble Netbook

At a press event here Tuesday, Nokia took the wraps off the anticipated Booklet 3G, a Windows 7 Netbook that will run exclusively on AT&T's 3G wireless network. At a subsidized price tag of $299, Nokia has managed to hit the sweet spot in the Netbook market with a high-end device at a bargain price point.
Not only will the new Netbook come with Microsoft's latest operating system, Windows 7, but it also has a battery that lasts up to 12 hours.
First impressions of the new Booklet 3G have been positive. The extended battery life, sharp screen resolution, and slick, lightweight design are all impressive, according to many reviewers. But the PC market has notoriously seen tight profit margins. And the new Netbook category is already flooded with competition.
So what is Nokia, a company that sells more than 400 million mobile phones a year doing, in the PC business? Nokia executives say that the Netbook device category is perfectly suited for Nokia. The company says that it fits solidly in line with the Nokia's overall strategy.
"Our company is about connecting people," John Hwang, general manager of connected computers at Nokia, said in an interview at the press event. "We connected the world's first billion people through the cell phone. And the next billion will be connected via computing devices like a PC."
Meanwhile, laptop PCs have shrunk in size. Cloud computing has reduced the need for huge amounts of data storage. As a result, the new Netbook or mini-PC category has emerged to provide corporate road warriors and other people wishing to access the Net on the go a lightweight alternative to lugging around heftier laptops. Service providers are further driving the trend by making these new laptops more affordable and usable by bundling 3G wireless service with them.
Glenn Lurie, president of emerging devices for AT&T, who was also at the Nokia press event, said that the Netbook market is hot. He referenced reports that indicate that more than 20 million Netbooks could be sold worldwide in 2009. While this pales in comparison to the overall mobile phone market, it's significant enough to become a decent business for Nokia, and it's the beginning of a much broader business for carriers, such as AT&T.

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