3G netbooks 'to eat into smart phone segment'

Toshiba Gulf expects the new 3G netbook - also known as a secondary notebook - which comes out in the first quarter of this year to take over a significant portion of the smart phone market segment.
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"Lots of enhancements are taking place in this [netbook] segment, within a short period of time, it is going to make a new category...slowly eating into the smart phones segment," Santhosh Varghese, regional general manager for Toshiba's Computer Systems Division, said.

He added that key pads in the current smart phone models were very small and only an expert could use them with two thumbs. He added that these phones only use hybrid versions of the Microsoft software.

In netbooks, you have the a fully-fledged version of the software, plus a keyboard and 3G. The device can be used as a secondary notebook or as a mainstream phone, he stated.

Toshiba should launch its first 3G netbook by February this year.

Growth

Varghese said netbooks will add up to 25 per cent to notebook growth this year. However, growth in notebooks is expected to remain in a similar range to last year.

More than 1.2 million netbooks are likely to be sold in the Gulf in 2009.

Toshiba forecasts strong growth within the sector for the next three to four years.

The Japanese firm, which launched its new netbook - NB100 - in November, has already sold 6,000 units across the region and will launch 10.1-inch and 12-inch models this year. He said Linux is not adopted in the Gulf region and is restricted to the Western market sector.

Linux usage in the region is around 1-2 per cent while more than 90 per cent is Windows XP based.

Software cost

Varghese said the netbook cannot currently work off Windows Vista as the cost of the software is too high.

"If the recession continues, I see a consolidation taking place this year. Many of the vendors cannot survive. Out of the current 10 notebook vendors, it could drop down to five strong vendors this year, which is good for the market," Varghese added.

Debate: WiMAX OR 3G?

There is heavy debate going around the world between WiMax and 3G, and a top Toshiba official expects 3G to become the winner in the race for its dual functionality.

"The 3G facility will survive if it is priced properly as WiMax has got certain limitations," Santhosh Varghese, regional general manager for Toshiba's Computer Systems Division, said.

"It can be used for mobile or data communications. I see 3G having better options than WiMax."

However, he said he sees slow adoption of 3G in the UAE. "Once the telecom operators in the UAE bring the prices down, there will definitely be growth. The telecom operators in the UAE will be forced to align the prices this year as many of the gadgets are coming out with 3G," he said.

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BY Naushad K. Cherrayil, Staff Reporter
Source：gulfnews.com