Nokia's not-a-netbook

Nokia’s netbook, the Booklet 3G, has been being lambasted for its high price, particularly given its slow processor and smallish hard drive:

Nokia's Booklet 3G

It seems that many of the people critiquing it are focused on its high price, without recognizing the impact of the features which differentiate it:

1. wide area broadband, not just WiFi


2. built-in location services with GPS


3. a rugged case, of Aluminum, not plastic


4. very long battery life, twice that of many netbooks.

These features change the function of the device, the job that potential users might hire it to do.

The function of a netbook is to connect quickly and cheaply to the web via WiFi in the home; this is the job that users hire netbooks to do.

What about customers who want a netbook-like device, that they can use while either mobile, or where WiFi is not available:

• in much of the world, there is little if any fixed broadband and less WiFi, let alone the hotspots that US road warriors can rely on being able to find as they refuel with caffeine; these potential customers are looking for a robust device that connects quickly and cheaply to the web via 3G cellular


• for US road warriors, a lightweight rugged long lasting device with good connectivity and location smarts might be a great candidate for their job: enabling me to connect quickly and easily while traveling.

A very long battery life may even eliminate the need for a top-up charge during the day, and hence for carrying a wall wart and scavenging for power.

The right way to look at an innovation is from the perspective of the function of the innovation. For Nokia that means how does its Booklet 3G stack up against the other candidates for this job:

• Nokia’s own high end smartphones such as the N97 or Apple’s iPhone


• rugged or lightweight laptops, plus 3G connectivity, such as Verizon’s MiFi device


• or even a conventional netbook, to which a 3G modem and large capacity battery have been added

The trade-off amongst these candidates is then very different:

• a lot bigger which is good for usability but bad for portability, a little more expensive than a smartphone


• cheaper and simpler and smaller than something like a MacBook Air or Dell Adamo


• even competitive with something like Dell’s own netbook for which adding a 3G modem and a large capacity battery boosts the price by $275.

Seen through this lens, moving into these adjacent markets makes a lot more sense for Nokia; its Booklet 3G netbook is the not-a-netbook. The interesting question for Nokia then becomes: are there enough customers in the developing world where it is so strong, leveraging 3G rather than fixed broadband, or enough road warriors who prefer their candidate for the job of portable companion?