Summary
What is Nokia's recent track record of launching non-core hardware devices. Is Nokia prepared to listen and quickly adapt to the needs of a new business. What is their competitive advantage. If it is price, it is a mistake. If it is the name, it is also a mistake.
Analysis
While on the surface a move by Nokia into the laptop sector might appear to be a positive, I believe a deeper look is warranted. First, Nokia has a poor track record in trying to enter a hardware category. No where else is this more apparent than their dismal effort of launching a handheld video game device. The N-Gage was a complete failure, one that started with the product engineering all of the way through the marketing and retail channel strategies. In addition, while some companies will cut their losses, Nokia tried to relaunch the system again. That tells me that their level of arrogance is blinding good business sense.
Secondly, the laptop market is crowded. There are a number of large scale hardware manufacturers battling in the space today. What does Nokia plan to bring that is different. If it is price only, they will get squeezed out quickly. Nokia needs to be innovative. Right now the laptop market is a race to the bottom. Price points are eroding rapidly. With the emergence of the netbook, the speed of the drop is increasing. Google's CEO announced this week that it might be wise of the wireless providers to offer subsidized netbooks. Unless Nokia plans on launching a well-throught out strategy to offer a robust subscription service, I believe it is a mistake.
Lastly, while the Nokia name may carry some cache, I believe it is irrelevant in a low price business that is dominated by emergining companies unknown 18-24 months ago.
With all that said, if Nokia is prepared to listen to their customers, and to introduce a unique program to the channel, then they may have a chance. But, based on their track record, I am skeptical.
