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SCMP Reporter

However, one analyst says the term is inappropriate because the Nseries devices have a limited functionality

Nokia's Nseries devices will be known as multimedia computers, although they look and work like 3G mobile phones.

The mobile phone giant announced its market category-defining strategy  last week for its flagship handheld products, part of its fast-growing multimedia business.

Dan Wong, vice-president for sales and channel management for multimedia business at Nokia China, said the Nseries range represented a new market for Nokia outside of its core mobile phone offering.

'We are in the early phase, but the reasonable expectation is that we will be building up this new product category,' Mr Wong said at a regional launch in Hong Kong for the new N72, N73 and N93 multimedia computers.

Nokia forecast the market for these 'converged' devices would hit 100 million units this year and reach more than 250 million units in 2008.

British market research firm Canalys estimated about 53 million such units were sold last year, with Nokia cornering more than half of the world market.

Nokia's multimedia business contributed a hefty 18.4 per cent share to the company's first-quarter net sales of Euro9.5 billion ($93.06 billion).

'We are now larger than the networks business,' Mr Wong said. The network equipment market made up just 8.8 per cent of total Nokia revenue in the first quarter.

The company introduced its Nseries range last year. It has since sold about 5 million units, led by the N70 model.

Every Nseries device has a stylish design, high-quality video playback and imaging capabilities, crisp digital audio performance and fast internet browsing.

'Some of our biggest markets for multimedia computers are countries without 3G networks, including China.

'The broad acceptance of these high-margin products gives us confidence in our strategy,' Mr Wong said.

Some analysts, however, see a problem with the Nokia Nseries branding.

Market research firm In-Stat principal analyst Jim McGregor said: 'I think using the term multimedia computer is an inappropriate use of creative licence.

'The appropriate term is multimedia handset. You cannot create digital content on it, or run any applications normally associated with a personal computer.'

Mr McGregor said the Nseries products did not come close to qualifying in the Ultra Mobile PC market category, which included devices such as the Mini-Note from mainland computer maker Founder Group and the Q1 from Samsung Electronics.

'We have a big task ahead just communicating our multimedia computer strategy,' Mr Wong said.

'One good thing from the product's provocative name is Nokia would get the opportunity to try to explain it to different people.'



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