More mobile carriers are offering Netbooks as a way to lure new customers--a trend that's likely to surge and encompass notebooks as well.
By 2013, more than 60 percent of all mobile devices, including Netbooks and notebooks, are expected to be sold directly by wireless carriers, according to research released Wednesday by In-Stat. Almost 31 percent of notebooks alone will be sold through carriers, In-Stat predicts.
Bundling an inexpensive Netbook or notebook is a small price to pay for a carrier, which can then charge customers for a monthly data plan.
"In the U.S., carriers are charging up to $60 per month for a two-year contract with the subsidized purchase of a Netbook," In-Stat analyst Jim McGregor said in a statement. "While the subsidy costs the carrier $50 to $100, it generates $1,440 or more in service fees over the life of the contract."
Carriers such as Verizon Wireless, AT&T, and Sprint have already been dangling Netbooks as carrots to attract more mobile customers. Verizon is selling Netbooks from Hewlett-Packard and Gateway. AT&T is selling Dell, Acer, and Lenovo Netbooks, as well as a Nokia Booklet 3G. Sprint is also selling a Dell Netbook.
Thanks to the success of low-cost Netbooks, U.S. carriers are further testing the waters by bundling full-size notebooks along with a two-year contract. The strategy isn't just limited to the United States, noted In-Stat. Carriers in Europe and Asia are giving out Netbooks with a data plan, but often at lower prices than in the U.S. Asian carriers have also been offering the kissing cousins of Netbooks: mobile Internet devices and ultramobile PCs.
This trend will intensify as carriers boost the number of services offered and cut prices on those services due to higher competition and better bandwidth, In-Stat said. The mobile market itself is also expected to become more attractive, with richer content and increased bandwidth.
Acer Aspire One
(Credit: AT&T)AT&T is hoping for happy holidays with the launch of two new Netbooks offering Windows 7 and mobile broadband.
The company announced Monday its new Netbook lineup--the Samsung Go and Acer Aspire One--both with built-in access to its 3G network. Available later this month in stores and online, both portables will cost gift buyers $199 after a mail-in rebate and two-year data plan contract.
The required DataConnect plan will offer 200MB of data for a new lower price of $35 per month, or 5GB for $60 per month, said AT&T. The plan will let consumers hop online via AT&T's 3G mobile network or any of the company's 20,000 Wi-Fi hot spots across the U.S.
"Demand for Netbooks remains strong among consumers, small business customers, and those who desire constant access to the Internet while on the go," said David Haight, vice president of product development for AT&T emerging devices, in a statement. "Paired with the nation's fastest 3G network, AT&T Wi-Fi service, and now the value and ease of use of Windows 7, these devices will make very attractive and affordable gifts this holiday season."
Samsung Go
(Credit: CNET)Weighing less than three pounds, the Samsung Go is equipped with a 10-inch screen, 160GB hard drive, 1 GB of RAM, and a 1.3 megapixel Webcam. A bit skinnier at 2.2 pounds, the Acer Aspire One also includes a 10-inch screen, 160GB hard drive, 1GB of RAM, and built-in Webcam.
Both Netbooks also come with AT&T's Communication Manager software, which tries to help Internet users better manage their connections by automatically tapping into AT&T hot spots.
The Samsung and Acer machines have one potential limitation, however. Like most Netbooks, they come with Windows 7 Starter Edition, a stripped down version of Windows 7 that lacks certain key features of its beefier brethren.
NEW YORK--Nokia, the world's largest maker of cell phones, is getting into the computer business with its new Booklet 3G, setting the stage for a new era of competition in the mobile device market.
Nokia Booklet 3G
(Credit: Nokia)At a press event here Tuesday, Nokia took the wraps off the anticipated Booklet 3G, a Windows 7 Netbook that will run exclusively on AT&T's 3G wireless network. At a subsidized price tag of $299, Nokia has managed to hit the sweet spot in the Netbook market with a high-end device at a bargain price point.
Not only will the new Netbook come with Microsoft's latest operating system, Windows 7, but it also has a battery that lasts up to 12 hours.
"The $300 price point is insane for a premium product like this," said Avi Greengart, research director at Current Analysis. "If you look at other Netbooks in this category that sell for about the same price you get four or four and a half hours of battery life. This will easily give you over eight hours of battery life with all radios turned on."
Of course, the $299 price comes with strings, as all such great deals do. For this price consumers must agree to a two-year data service contract with AT&T. The service will cost $60 a month for up to 5GB of data per month. Best Buy will be the only place to get the new Netbook through the holidays. And it will also offer an unsubsidized Booklet 3G for $599, which will not require the $60-a-month AT&T service plan.
First impressions of the new Booklet 3G have been positive. The extended battery life, sharp screen resolution, and slick, lightweight design are all impressive, according to many reviewers. But the PC market has notoriously seen tight profit margins. And the new Netbook category is already flooded with competition.
So what is Nokia, a company that sells more than 400 million mobile phones a year, doing in the PC business?
Nokia executives say that the Netbook device category is perfectly suited for Nokia. The company says that it fits solidly in line with the Nokia's overall strategy.
"Our company is about connecting people," John Hwang, general manager of connected computers at Nokia, said in an interview at the press event. "We connected the world's first billion people through the cell phone. And the next billion will be connected via computing devices like a PC."
John Hwang, general manager of connected computers at Nokia
(Credit: Marguerite Reardon)Hwang went on to say that the line between a phone and a computer is quickly blurring. Smartphone devices, such as the Apple iPhone or Nokia's own N-series devices, now provide full HTML browsers for Internet browsing. They provide e-mail and Internet search. And because they are connected to high-speed 3G wireless networks, these devices offer even more new Internet-enabled applications.
But smartphones are still too small to really get much work done on them.
Meanwhile, laptop PCs have shrunk in size. Cloud computing has reduced the need for huge amounts of data storage. As a result, the new Netbook or mini-PC category has emerged to provide corporate road warriors and other people wishing to access the Net on the go a lightweight alternative to lugging around heftier laptops. Service providers are further driving the trend by making these new laptops more affordable and usable by bundling 3G wireless service with them.
Service providers see Netbooks as the first of many non-cell-phone devices that they hope will generate more service fees for their wireless networks.
"The Booklet 3G lines up well with AT&T's strategy," said David Petts, the Nokia vice president heading up the AT&T account. "People increasingly want to get content on multiple screens. And this is one more screen and device. So it's part of that macro trend. And it lines up nicely with Nokia's strategy of connecting people."
Glenn Lurie, president of emerging devices for AT&T, who was also at the Nokia press event, said that the Netbook market is hot. He referenced reports that indicate that more than 20 million Netbooks could be sold worldwide in 2009. While this pales in comparison to the overall mobile phone market, it's significant enough to become a decent business for Nokia, and it's the beginning of a much broader business for carriers, such as AT&T.
Analyst says move makes sense
But the real reason that Nokia is getting into the PC business is likely because it has to.
"It makes perfect sense for Nokia to get in this market," Current Analysis' Greengart said. "The PC guys are all getting into their business."
Indeed, PC competitors have already begun entering its mobile phone market with smartphones. The most challenging competitor to Nokia so far is Apple with its three generations of iPhone. In a little over three years, the iPhone has revolutionized the mobile market. It has set a new standard for "smartphones," pushing companies, such as Nokia, to develop more advanced touch-screen phones as well as easier to use user interfaces and more customer-friendly application downloading stores.
This past year, Nokia has lost market share to Apple in the smartphone category. And competition is expected to get more intense in the coming year, as Apple develops more products in this market.
Apple has not yet announced a Netbook of its own. The company's MacBook laptops are priced much higher than most PC laptop competitors, which makes them completely out of range for customers looking for less powerful and less expensive Netbooks.
But some analysts, such as Greengart, think that Apple will take the same strategy as Nokia when it finally introduces a mini-laptop.
"I predict that Apple will enter this market, like Nokia has, with a premium product that is priced in the $300 range," he said. "Today, the least expensive MacBook is $800 to $900. There is a steep jump to that when you are looking at a subsidized $300 product."
Apple already allows its iPhones to be subsidized by AT&T in exchange for requiring customers to sign a two-year service contract. So it's not much of a stretch to think they would follow the same strategy with a Netbook.
Apple may be the most threatening nontraditional competitor Nokia faces, but it's not the only PC maker trying to steal some of Nokia's smartphone business. Other PC makers, such as Dell, Hewlett-Packard, Lenovo, and Acer have or will soon introduce new smartphones.
The one thing that could derail growth of this new product segment is the cost of the wireless service that these devices are bundled with. Without subsidies from wireless carriers, the devices are not much cheaper than full-fledged PCs. But with the subsidy comes a two-year service contract. AT&T's wireless data customers, who pay $60 a month for up to 5GB of service per month, spend a total of $1,440 in service fees over their two-year contracts.
For customers, who most likely already have a cell phone data plan, the extra $60 a month is a hefty charge. And it could discourage some consumers from signing up.
"There could be some service contract fatigue," Greengart said. "But there are some segments of the market that this will work well for."
AT&T's Lurie said that there will likely be more pricing options available for Netbook subscribers in the future.
"We will be announcing some other service plans in the mini-computing market," he said. "What we've said all along is that for this market to take off, consumers will need more choice around rate structures."
But for now, the $60 plan is the only plan available for the new Nokia device. That said, AT&T executives have said previously that they expect to introduce other business models, which could one day allow consumers to pay for one subscription and use multiple devices or a plan that allows the cost of the plan to be bundled into the price of the device. This is a business model that is being used with electronic book readers.
Nokia's executives said they see no problem with the $60 a month service charge. And they believe a market exists for the Booklet 3G at this price point.
"We don't have concerns about the service pricing, Nokia's Petts said. "We think the device offers a lot of value to customers. The long batter life and the fact that you can jump between Wi-Fi and 3G wireless are important differentiators. I personally am ditching my old laptop as quickly as I can to use the Booklet."
Nokia, the world's largest maker of cell phones, on Wednesday announced new phones loaded with more music features and better integration with Facebook, as well as pricing for its upcoming Netbook.
Nokia N97 Mini
(Credit: Nokia )The company announced the new phones and services at its Nokia World Conference in Stuttgart, Germany.
Tops on the list of new phones is the N97 Mini, a slightly smaller version of Nokia's existing flagship N97 smartphone. This new, smaller N97 has a shorter battery life than the earlier device and also less memory (8GB compared to 32GB), and a smaller touch-screen display. The device is expected to ship in October. Its list price at 450 euros, or about $639, is not much less than that of the full-fledged N97, which initially went on sale in the U.S. for $700.
The new N97 Mini also will have Nokia's Comes With Music service integrated. This service increases the cost of the device, but provides users with a free download music service. And the device will be the first Nokia phone to have tighter integration with the popular social networking site Facebook. Nokia has struck a deal with Facebook to let users update their location and status directly to the Web site through a Nokia Ovi account.
Nokia plans to offer the Facebook integration on other phones as well.
The handset maker also announced two new music phones: the X6 and the X3. The X6, which has a touch screen and 32GB of built-in memory, will be Nokia's new flagship music phone. ... Read more
The Nokia Booklet 3G is a full-fledged Windows Netbook.
(Credit: Nokia)Not a week goes by without another electronics giant deciding to hop on the overcrowded Netbook bandwagon. Still, it's unusual when a phone manufacturer decides to cross over. Nokia, long rumored to be getting into 3G mini-laptops or "smartbooks," has finally announced a very real 10-inch Netbook.
Called the Booklet 3G, it has a clear design relationship with its phone line, while still being an honest-to-goodness laptop (as opposed to some sort of smartphone hybrid). Running an Atom Z530 processor instead of the more common N270, it also has:
- An HDMI port
- Wi-Fi
- 3G (obviously)
- An SD card reader
- A-GPS and maps integration
- A Webcam
- Bluetooth
- And, according to Nokia, a 12-hour battery life
The Booklet 3G also runs Windows--as to whether it's Windows 7, Nokia isn't announcing yet, but that's a pretty safe assumption with Microsoft's OS just around the bend.
The other unique feature worth discussing is the Booklet's integration with Nokia's Ovi tools, including the company's maps, music store, and cloud-based Ovi Suite. Nokia isn't revealing yet how much software it'll be adding to the Windows cocktail, but it would be a great idea to add as much of their mobility-assisting software as possible.
No price or launch date has been announced yet. Nokia plans to reveal a lot more on September 2.
Would you buy one of these?
Nokia, the world's largest maker of cell phones, could be preparing to enter the crowded Netbook market.
According to the Economic Times, Nokia CEO Olli-Pekka Kallasvuo told reporters at a press event Wednesday in India, that "the PC and the mobile will continue to come closer and merge." He said Nokia sees a lot of opportunity in this convergence and he added that the company is "looking at the Netbook market to see what kind of opportunity is there."
Nokia has been marketing its N97 smartphone as a mobile computer.
(Credit: CNET )It shouldn't come as a big surprise that Nokia might push further into the computing space. The company has been marketing its new smartphone, the N97, as a "mobile computer." And the company has also been selling its mobile Internet devices, or N-series Tablets.
These devices, which are geared toward early adopters and gadget lovers, typically start at around $300 to $400. They don't incorporate a traditional cell phone, but they come with a full QWERTY keypad and access to the Internet via Wi-Fi or through a Bluetooth-connected phone.
Netbooks appeal to a wider audience than mobile Internet devices, which could help Nokia diversify its business. Netbooks, which once were seen as "companion devices" for accessing cloud-based services like Gmail or social-networking sites like Facebook, are now being used as full-blown computers.
Their low cost (around $299) has driven big sales of these devices. About 16 million Netbooks were sold in North America in 2008. And because these devices often use Windows XP, a familiar operating system, most PC users already feel comfortable using them.
Nokia is likely hoping to cash in on Netbooks' popularity.
It's clear that consumers are looking to be more mobile and as carriers around the world build faster 4G wireless networks, demand for mobility will likely increase. What's more, Nokia and other handset makers will soon be facing competition from computer makers in the mobile phone market. Laptop maker Acer has already announced it is developing a smartphone. And there are reports that PC maker Dell is also working on a mobile phone.
If you thought a $99 Netbook was a bargain, Sprint Nextel's plan to sell Netbooks for a buck is a real steal.
Sprint has teamed up with mega-retailer Best Buy to sell the Compaq Mini 110c-1040DX Netbook for 99 cents with a two-year service contract. The offer is good at participating Best Buy stores.
Best Buy plans to sell the same Netbook for Verizon Wireless and AT&T for $199.99 with a two-year contract. Without any service contract, the Netbook costs $389.99, according to Best Buy's Web site.
Compaq Mini 110c-1040DX Netbook
(Credit: Compaq)The Compaq Mini 110c-1040DX Netbook features a 1.6GHz processor and 160GB hard drive.
Sprint's 3G wireless service is $60 a month for 5GB of data monthly, making the true cost of the Netbook with two years of service $1,440.
Verizon offers two tiers of data service. The $40 a month plan offers 250MB of data monthly. And the $60 a month plan offers a maximum of 5GB of data. With the current pricing, Verizon Netbook users can expect to spend $1,160 to $1,640 during the life of the contract for the service and Netbook, depending on which plan they choose.
AT&T offers similar pricing for its data service. For up to 5GB of data per month, the service is $60 a month, plus it offers free access to AT&T's 20,000 nationwide Wi-Fi hot spots. A service that offers 200MB of data per month costs $40 a month. In addition to the current offering for the Compaq Mini, AT&T also offers other Netbook deals. The subsidy price on a variety of Netbooks, including the Acer Aspire One, Dell Inspiron Mini 9 and Mini 12, and LG Xenia, ranges from $50 to $250.
Netbooks are becoming a hot business for carriers that are looking to get consumers using their wireless data services. The wireless operators are taking a page out of their old playbooks by subsidizing the devices to spur adoption.
But it's unclear so far if the plan will work. Already consumers are being asked to pay more per month for regular cell phone service. And the expensive data plans could deter some consumers who do the math and realize they don't actually need to be spending over a $1,000 for one of these mini-laptops when these devices and laptops can be used for a very low cost or even free when using Wi-Fi hot spots.
NEW YORK--The nation's second largest wireless phone company came to the Big Apple this week to strut its stuff.
At an event in a swanky boutique hotel in midtown Manhattan, AT&T representatives displayed several new handsets that are launching soon or have just launched on the carrier's network. Included in the lineup were several new smartphones, such as the hot Nokia e71x and the BlackBerry Curve 8900, which goes on sale Friday.
In addition to its new smartphones, AT&T showed off some new budget-friendly phones, such as the $20 Samsung Magnet and the new LG Neon, which hasn't been priced yet. These phones have full QWERTY keypads for quick typing, but they're inexpensive and don't require pricey data plans that come with smartphones.
As part of its push to offer wireless service to more consumer devices, AT&T also showed off its new Netbooks, or mini-laptops, that will go on sale nationally this summer. The company plans to subsidize the Netbooks for customers signing up for a two-year service contract for its 3G wireless network. So far, pricing hasn't been released yet.
But AT&T didn't just highlight its new gadgets. It also showed off some enhancements to its new applications and services, as in the case of its YellowPages.com application for the iPhone. This free application allows iPhone users to find local businesses and listings from their devices. The service just recently added mapping functionality to the application. And the company also played up its AT&T Mobile TV service, which is offered over MediaFlo's mobile broadcast TV network.
And finally, AT&T demonstrated its interactive U-verse TV service. And as of the end of the first quarter, AT&T said it had a total of more than 1.3 million U-verse TV subscribers.
One of the Netbooks offered by AT&T.
(Credit: Nexus404)If you've been waiting for AT&T's Netbook data plans to come to your area, the wait is almost over.
The company first offered these plans exclusively in Philadelphia earlier this year. Saying that trial was a success, AT&T announced Tuesday its intent to expand these data plans to the rest of U.S. this summer.
This means you'll soon be able to buy mini ultraportable laptops made by Dell, Lenovo, and Acer at a discounted price when you get a 3G data plan at one of AT&T's retails store or on its Web site.
According to an IDC report published in April, by the end of 2009, worldwide shipments of mini laptops could reach 22 million. Obviously, AT&T wants its share of the growing Netbook pie.
Currently, details on pricing and availability of the new devices and the data plans are not finalized and AT&T said it would announce that at a later time. However, the company has made it clear that Netbooks embedded with AT&T 3G services will also be available through other national retailers.
Verizon Wireless will start selling Netbook computers from Hewlett-Packard starting Sunday, the company said in a statement released Thursday.
As previously reported by the Boy Genius Report, the HP Mini 1151NR Netbook will be priced at $199.99 after a $50 mail-in rebate and will require users sign a two-year service agreement for wireless broadband services.
Verizon Wireless will begin selling the HP Mini 1151NR Netbook on Sunday.
(Credit: Verizon Wireless)Verizon is sticking with its current 3G wireless pricing. But it has increased the amount of data downloads per month for its lowest tier of service. Now subscribers will be able to get the $40 a month plan with 250 Megabytes of data per month. Previously, the $40 a month plan only offered 50 MB of data downloads per month. The overage charge on this plan has been reduced to 10 cents per megabyte over the limit. Previously, the company charged 25 cents per megabyte for overages.
The $60 a month plan will still offer a maximum of 5GB of data, but Verizon has reduced the overage price to 5 cents per megabyte over the 5GB limit, instead of the 25 cents it previously charged.
Verizon is also offering a Mobile Broadband DayPass for $15. This day pass gives users access to the Internet for 24 hours and can be purchased for any Verizon certified mobile device that is purchased at full retail price without a monthly service plan, the company said.
The modifications to the data plan are a sign that Verizon is trying to add more value to its wireless broadband service. But at these hefty prices, many consumers may still find the price of the two-year service contracts too stiff.
With the current pricing, Verizon Netbook users can expect to spend $1,160 to $1,640 during the life of the contract for the service and Netbook, depending on which plan they choose. (This doesn't include taxes or fees.) HP's Mini 1000 Netbooks only cost about $300 without a 3G service contract.
Verizon Wireless's international data plan is even more expensive. The device can access wireless broadband on both CDMA and GSM wireless networks in more than 175 destinations worldwide, the company said. And with a SIM card, GlobalAccess customers can sign up for one of two service plans.
They can get the GlobalAccess Monthly plan, which costs $130 a month for 100 MB worth of data downloads per month in more than 30 select international destinations. This same plan allows for 5 GB of downloads per month in the U.S. and Canada. All other destinations are charged pay-per-use rates.
The second option for globetrotters looking to stay connected with their Netbooks is the Global Access Pay Per Use plan, which allows subscribers of the $60 a month mobile broadband plan in the U.S. to get special rates on international usage. The Pay Per Use rate is $0.002 per kilobyte in Canada, $0.005 per KB in Mexico, and $0.02 KB in more than 175 other destinations.
At steep prices like these, Verizon may find more success letting consumers buy their own Netbooks and signing them up for individual $15 day passes.
