Nokia recently announced its intention to enter the fast growing netbook space with the introduction of the Nokia Booklet 3G. Below is the nice-looking marketing video that provides an introduction to this product.
Here is the quick summary of the Features and Specs:
- Intel Atom processor
- Microsoft Windows 7
- 10″ screen, 2.75lbs
- High-end embellishments including HDMI port and aluminum enclosure
- Fully suite of connectivity including WiFi, HSPA 3G and GPS
- 12-hour battery life
- Integration with Nokia’s mobile services including:
- Nokia Music store
- Maps, Contacts, mail, photosharing
- expected $700-800 price point
The media has been apt to comment on how Nokia is becoming more Apple-like in its offerings albeit in the opposite direction of crossing from mobiles in PCs. This is an interesting point and another step in the road toward convergence of the mobile and PC industries.
The reaction has been heavily mixed with some critics pointing out entering the PC industry with its razor thin margins will not help Nokia’s financial performance. Clearly, with its high end price point and supporting embellishments such as aluminum casing and HDMI output, Nokia is trying to position the Booklet closer to a MacBook Air as opposed to a Asus eeePC and earn Apple-like margins as opposed to Dell-like ones.
It will be interesting to see if the Booklet will be able to maintain is price position. Certainly the use of commodity components such as the WinTel architecture and likely standardized smartphone chipsets suggests the Booklet’s hardware specs can be easily replicated.
Assessing Strengths and Weaknesses
The two potentials advantages I see are distribution and OVI services. With its scale, Nokia does have the ability to push the Booklet through its traditional mobile distribution channels to get into niches of the market inaccessible to traditional PC manufacturers. Currently, there is an gap in the netbook market for a subsidized high-end mobile enabled netbook sold through mobile operators in return for multi-year contract commitment that Booklet could fill. And to be fair, the $700 expected price point isn’t actually that far off from what Nokia charges for its high-end N-series smartphones.
The other potential advantage for the Booklet is its integration with Nokia’s OVI mobile services which potentially serves as a point of differentiation to traditional netbook OEMs (at least until Apple releases it’s Tablet + MobileMe offering) and could function as potential point of lock-in into a Nokia mobile devices ecosystem.
One point of concern is system performance and whether the Booklet, with its Atom processor, will run speedy enough to live up to its high end positioning in the netbook space.
Handicapping Market Success
All-in all, I don’t expect the Nokia to a runaway success in the vein of the iPhone or eeePC. However, it’s probably not expecting such monster results anyways. Realistically, I expect Booklet to have some good success in the European market via dint it’s brand and distribution strength.
For the same reasons, it will probably be challenged in North America, absent a huge marketing push and some heavy hitting distribution agreements such as with AT&T.
Asia is more of a mixed bag – again its stronger brand in Asia and distribution networks (relative to North America) should help it see play. However, because its their hometurf, competition will be much more fierce from the Asian electronics manufacturers such as Sony and Samsung. Nokia’s success here will hinge on its ability to focus on the high end of the market and create some form of differentiation via promotion.
Most interesting thing I see from the Booklet is Nokia trying to set itself up to be a kind of “European Apple” focusing on the high-end segments of that market.
