Nokia Plans Entry Into Crowded Netbook Space - Page 2

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Most speculation about Apple's long-rumored tablet describes it as a larger version of the iPod Touch. It would have a screen just under 10 inches in size, play apps from the App Store and sell for between $500 and $700, according to various rumors.

Smart move for Nokia

Despite the threat, Jack Gold, founder and principal analyst at J.Gold Associates, said he thinks that the debut of a netbook is smart move by Nokia, and is a direct offshoot of the recent Nokia-Intel relationship announced in June.

"Certainly, whether Nokia is successful or not with the Booklet 3G will depend on the quality of the product," Gold said in an e-mail to InternetNews.com. "But Nokia has now ventured beyond its traditional focus on phones and into the emerging market for netbooks and other Internet-centric wireless devices."

"Its announced relationship with Intel and Microsoft will continue to allow it to expand its portfolio and to take advantage of its compelling advantage in carrier relationships," he said. "And the expansion of Ovi should help Nokia overall. We expect Nokia to be a force in the wireless device market across all platforms and not just smartphones."

Gold added that he believes Nokia is well-positioned to take on Apple and BlackBerry maker Research In Motion, with the move into netbooks critical to keeping its edge overseas.

"Few of Nokia's traditional smartphone competitors (e.g., Motorola, Palm, RIM, Sony Ericsson) have the wherewithal to compete in the netbook market and be successful," he said. "Even Apple would have a difficult time competing in this space as it does not enjoy the distribution breath of Nokia, nor is it good at being a low-cost producer."

However, Gold said that a real threat to Nokia in netbooks may be coming from "emerging competitors from the Far East (e.g., Asus, Huawei, HTC, ZTE) [who] have also targeted this space for growth in both home markets and abroad."

"Nokia needed to move up to netbooks in order to remain competitive and limit the impact these up-and-coming suppliers have on Nokia's overall business, including its traditional smartphone business, which several of these companies are also targeting," he added.