The world's lead mobile phone manufacturer Nokia announced that it would begin to manufacture laptops,entering a more and more fiercely competitive, but fast-growing market.
For its first netbook, the Nokia Booklet 3G, will use Microsoft's Windows software and Intel's Atom processor, offering over 12 hours of battery life, and weighing 1.25 kilograms. Netbooks are low-cost laptops optimized for surfing the Internet and performing other basic applications. Pioneered by Asustek in 2007, other brands such as HP and Dell have also pushed out their own lines since then.
Nokia said it would reveal detailes, market availability and pricing of the device later.
Research firm IDC expects netbook shipments this year to raise more than 127 percent from 2008 to over 26 million units, outperforming the overall PC market which is expected to remain flat and a phone market which is shrinking some 10 percent.
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 be a bad influence on Nokia's profits in the future.
"Nokia will be hoping that its brand and knowledge of cellular channels will play to its strengths as it addresses this crowded, cut-throat segment," said Ben Wood, director of research at CCS Insight. "At present we see Nokia's foray into the netbook market as a niche exercise in the context of its broader business."
A news related to Nokia that the new netbooks would use the upcoming Windows 7 operating system. Microsoft says a stripped-down version of Windows 7 will be introduced to netbooks the same time as its general release on Oct 22.
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