Nokia enters PC industry with first netbook

Nokia has seen its profit margins drop in the handset industry as the demand for the handsets has slumped. Now they have decided to foray into the PC industry, a move which worries the analysts as profit margins are traditionally thin in the PC industry and this could hurt Nokia’s profits further.

"We are fully aware what has the margin level been in the PC world. We have gone into this with our eyes wide open," said Kai Oistamo, the head of Nokia’s key phone unit.

Nokia is expected to bring out it’s first netbook, the Nokia Booklet 3G sometime soon with more information on pricing and availability to be revealed on September 2. It will use Microsoft’s Windows (most likely stripped down version of Windows 7) and Intel’s Atom processor — offering up to 12 hours of battery life, and weighing 1.25 kilograms (2.8 lbs).

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.

Source: Reuters

**Here is the Press release

After more than 25 years as a pioneer and leader in the mobile industry, Nokia will bring its rich mobility heritage and knowledge to the PC world with the new, Windows based, Nokia Booklet 3G.

Powered by the efficient Intel Atom processor, the Nokia Booklet 3G delivers impressive performance with up to 12 hours of battery life, enabling people to leave their power cable behind and still be connected and productive. Delivering the rich experience of a full-function PC inside an ultra-portable aluminum chassis, the new mini-laptop weighs 1.25 kilograms, measures slightly more than two centimeters thin, and has the features one would expect from the world’s leading mobile device manufacturer.  A broad range of connectivity options – including 3G/ HSPA and Wi-Fi – gives consumers high speed access to the Internet, including Nokia’s broad suite of Ovi services, and allows them to make the most of every moment and every opportunity.  

 

"A growing number of people want the computing power of a PC with the full benefits of mobility," said Kai Oistamo, Nokia’s Executive Vice President for Devices. "We are in the business of connecting people and the Nokia Booklet 3G is a natural evolution for us. Nokia has a long and rich heritage in mobility and with the outstanding battery life, premium design and all day, always on connectivity, we will create something quite compelling. In doing so we will make the personal computer more social, more helpful and more personal."

The mini-laptop also comes with an HDMI port for HD video out, a front facing camera for video calling, integrated Bluetooth and an easily accessible SD card reader. Other premium features include the 10-inch glass HD ready display and integrated A-GPS which, working with the Ovi Maps gadget, can pinpoint your position in seconds and open up access for a truly personal maps experience. The Nokia Booklet 3G also brings a number of other rich Ovi experiences to life, whether its access and playback of millions of tracks through the Nokia Music Store, or using Ovi Suite to sync seamlessly from your Nokia smartphone, to your mini-laptop, to the cloud.

The Nokia Booklet 3G will widen the Nokia portfolio, satisfying a need in the operator channel, and bringing another important ingredient in the move towards becoming a mobile solutions company.

Further information, including detailed specifications, market availability and pricing, will be announced at Nokia World on September 2. For more information on Nokia World, visit: http://events.nokia.com/nokiaworld/home.htm