Nokia mini-Laptop: a New Channel to Market Nokia Services Gerson Lehrman Group Nokia puts all its might behind services, and the mini-laptop’s main objective is to channel users to Ovi.
One can think of many reasons why Nokia developed a mini-laptop:
- as Apple has entered the smartphone market, Nokia needs to compete in the computer industry too.
- convergence between mobile phones and computers blurs boundaries and as a leader in the smartphone category, it is not that difficult for nokia to bridge the gap and enter the netbook segment, therefore competing across all market segments.
- Nokia protects its key markets, as netbooks may soon be an alternative to smartphones.
- mobile operators growth is harder to come by, as markets become saturated and more users choose flat-rates. This could be a way for Nokia to get closer to mobile operators: Nokia offers operators a chance to get more from their subscriber base, by upgrading users to these devices as an additional line, in exchange for stocking more products in their portfolio, and keeping subsidy levels on Nokia devices.
The Nokia mini-laptop has remarkable specs and a small price, and Nokia is paying for Best Buy associates to offer Walk Out Working on the Nokia Booklet 3G, free to consumers. This is a big investment, and the return will probably not come from the margin (or loss) on each device, but from Ovi services. Or that is most likely what Nokia management is betting on.
As shown with the latest new entrants in the mobile industry, user interface and a suite of value added services is key to success, and this is what Nokia is trying to develop and add to its portfolio. Devices is not longer sufficient to build lasting business, which is what other major players in the industry should understand and focus on too.
