Nokia to enter the PC gadgets industry with its first Netbook

The world’s top cell-phone maker Nokia recently declared its intention to enter the fiercely competitive but fast-growing market for Netbook gadgets.
However, the announcement was greeted with concern by various concerned stakeholders. Nokia has seen its profit margins drop over the last quarters as handset demand has slumped, and analysts have worried that entering the PC industry, where margins are traditionally razor-thin, could hurt Nokia’s profits further. Experts are also curious to see Nokia’s strategy to differentiate itself in the competitive market.
Nokia’s first netbook, 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. Pioneered by Asustek with the hit Eee PC in 2007, netbooks have since been rolled out by other brands such as HP and Dell.
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.
A source close to Nokia said the new netbook would use the upcoming Windows 7 operating system, a choice that surprised many, Nokia was long considered a supporter of Linux. Microsoft says a stripped-down version of Windows 7 will be introduced to netbooks the same time as its general release on October 22. Nokia said it would unveil detailed specifications, market availability and pricing of its new gadgets on Sept 2.

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