Nokia Seeing Corporate Demand for First Netbook
By Phil Goldstein
Nokia said it has so far seen strong interest from corporations and enterprise users for its first netbook, the Booklet 3G, according to a company executive. The device was first unveiled in August and is set to go on sale in the United States through Best Buy.
"When we launched the Booklet 3G ... we thought it to be primarily a consumer device, but after the launch a big, growing interest is coming from companies," said Heikki Norta, head of Nokia corporate strategy, according to Reuters. "No one knows yet if a booklet kind of device is the next device that will be used by millions, or hundreds of millions, of people, but right now it looks like, if not for mass market, there is clear demand."
In October, AT&T Mobility said it would sell the Booklet 3G for $299.99 to customers who sign up for a two-year AT&T mobile data contract. The device will cost $599 for customers who do not opt to go with the AT&T plan, and will be sold exclusively at Best Buy locations as well as Best Buy Mobile stores. Nokia said the device was supposed to go on sale by mid-November, but a check of Best Buy's website shows the device is on back order.
The netbook sports HSPA and WiFi connectivity and features a 10-inch glass HD-ready screen, up to 12 hours of battery life and support for Microsoft's Windows 7 operating system with a 1.6 GHz Intel Atom processor. [FierceWireless]
Global Netbook Market On-Track for 35 Million Shipped in 2009
According to the latest market data from ABI Research, almost 35 million netbooks will be shipped by manufacturers in 2009; a forecast the firm first made in February. ASUS dominated the netbook category in 2007 when it debuted the Eee PC, and Acer made a big push in Q4’2008 to lead the second year.
“74% of 2008 netbook shipments bore the brands of just three vendors: Acer, ASUS, and Samsung,” says senior analyst Jeff Orr. “However, the rapid growth of netbooks as a second computer in developed markets will be eclipsed in coming years by vendors targeting developing nations and first Internet PCs at home.”
The netbook and nascent MID markets are not locked up. While several of the leading netbook vendors are recognizable brands from the laptop and desktop computing markets, new vendors – including handset maker Nokia – have introduced netbooks and MIDs in an effort to participate in the growth of these segments. ABI Research forecasts UMDs (Ultra-mobile Devices: the combination of Netbooks, MIDs and UMPCs) to top 124 million systems shipped in 2011.
As netbook markets thrive, the mobile consumer electronics category, which is expected to account for only about two million device shipments this year, is forecast to top 50 million in 2014. This market is currently led by connected Personal Navigation Devices (PNDs) and eBook readers. Every major navigation company is in the running, offering turn-by-turn navigation, overlays, weather, traffic, and real-time traffic updates. Amazon’s Kindle has lots of competition coming from the Barnes & Noble Nook, Sony Daily Edition, iRex, Plastic Logic Que and others.
Finally, Orr believes, laptop vendors may soon “reinvent the UMPC,” bringing down the low-end laptop price to $500 through ultra-low voltage machines. “That could affect some netbook sales in developed markets, especially the business users.” [ABIResearch]
The Down Economy Could Give Alternative Netbook Operating Systems a Hand Up
Cash-strapped consumers and an economy in recession and are bad news for sales of most products. But that may not apply to netbooks. Several characteristics of the diminutive Web-oriented computers may actually work to their advantage in a depressed market.
According to ABI Research principal analyst Philip Solis, “Netbook sales may not be adversely affected – in fact may actually be helped – by the recessionary pressures. There are three reasons for this. First, netbooks are a fairly new class of device, and widespread adoption has only recently begun. Second, they are relatively inexpensive, and some consumers may see them as a viable alternative to that pricey laptop they originally intended to buy. Finally, they can run inexpensive operating systems that don’t require powerful hardware.”
Three out of every four netbooks shipped last year ran Windows XP as their operating system. That is changing. While much recent media attention has been focused on the trend to beef up netbooks and make them more laptop-like (and more expensive), the more important change has been at the lower end of this market. To create a lower-cost device designers are turning to Linux, and, for netbooks with ARM processors, to any of several mobile device operating systems such as Android.
Mobile OSs such as Android, Windows Mobile, and Maemo can still provide the core functionality required of a netbook, but at lower cost and with smaller storage and memory requirements.
Solis says, “ABI Research believes that 2012 will see the tipping-point at which netbooks running Linux-based and mobile operating systems outnumber those running Windows XP. Device vendors, chip-makers and mobile operators can take some comfort from the fact that this trend should help expand the market even in a down economy.” [ABI Research]
Verizon Jumping Into Netbook Market
By Phil Goldstein
Verizon Wireless appears to be getting into the netbook market, following chief rival AT&T's plans to subsidize netbooks for as low as $99, according to a report on TheStreet.comThe report, citing an unnamed company official, said that at least one netbook had passed Verizon's strict network compatibility tests, and that the carrier will launch more netbooks in the future. The Verizon source did not reveal which computer brands or models were involved in the deal. There is no word on pricing or availability.
The move, if confirmed, would make sense for Verizon as it tries to maintain its competitive edge against AT&T. AT&T confirmed earlier this month that it is subsidizing netbooks in order to lure customers to sign two-year service contracts. Customers can get the netbooks from AT&T for $99, but then have to pay a $60 per month fee to use AT&T's data services.
The subsidy model is a strategy that AT&T has said it will seek to employ not only with netbooks, but with other devices, including portable video game devices and digital cameras.
"The economics for us is terrific," Glenn Lurie, AT&T's president of emerging devices, said in an interview with Investor Business Daily earlier this month. "We're willing to invest to get a customer." Lurie will be talking about AT&T's embedded device strategy during FierceMarkets' Path to 4G event April 1 at CTIA Wireless 2009 in Las Vegas. Click here to see the agenda. [FierceWireless]
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