“This was a difficult but necessary decision to improve the company’s competitive position,” Dell (DELL) spokesman David Frink said. “It is not a commentary on workers in North Carolina or workers in the United States.”

Of course not. As Dell CFO Brian Gladden said during the company’s last earnings call, “Our cost reduction programs have never been more crucial than during this weaker demand environment.”

Still, it’s unfortunate to see the company forced to shift work once done in the states to lower-cost contract manufacturers abroad. This is, after all, Dell’s third big closure in recent memory. The company stopped desktop manufacturing in Lebanon, Tenn., earlier this year, and in 2008, it shuttered a desktop plant in Austin, Texas.

Not a week after confirming its interest in the netbook market, Nokia leapt into it, uncrating the Booklet 3G–a 2.8-pound “mini-laptop” with 3G, WiFi and A-GPS support, a 10-inch HD-ready display and a claimed 12 hours of battery life. The machine will feature an Intel (INTC) Atom processor and likely run a version of Microsoft’s (MSFT) Windows. Finally, it will support Ovi, Nokia’s (NOK) version of Apple’s (AAPL) App Store.

“A growing number of people want the computing power of a PC with the full benefits of mobility,” Kai Oistamo, Nokia’s executive vice president for devices, said in a statement. “We are in the business of connecting people and the Nokia Booklet 3G is a natural evolution for us. Nokia has a long and rich heritage in mobility and with the outstanding battery life, premium design and all day, always on connectivity, we will create something quite compelling. In doing so we will make the personal computer more social, more helpful and more personal.”
 
Quite a pledge. And one that Nokia must deliver on if it’s to become a full-fledged mobile solution provider.

“Nokia is not trying to move into the extremely competitive market for PCs in general, even though it describes the Booklet 3G as a mini-laptop. What it is doing is moving to protect its key markets,” said Gold Associates analyst Jack E. Gold. “Indeed, netbooks are increasingly being sold as mobile device alternatives (or supplements) to smartphones. Many have 3G radios included, can make voice calls (via VoIP) and are increasingly being sold and subsidized by traditional wireless carriers. Therefore, it is logical to see Nokia make this move.”

“If (the Eee PC from) Asus starts to do well, we are all in trouble. That’s just a race to the bottom.”

– Mike Abary, senior vice president of Sony’s IT product division, February, 2008

If the netbook market is a race to the bottom, then Sony is bringing up the rear. Not a year after Sony execs disparaged netbooks as undeserving of its premium brand attention, the company announced its token entry into the market: the Vaio W.

Outfitted with a 10-inch screen, an Intel (INTC) Atom processor, 1GB of memory, a 160GB hard disk drive and Windows XP, the machine prices out at $630 in Japan, $499 in the U.S. That’s quite a bit more expensive than rival netbooks. Which is odd since the market for these machines is fairly price-sensitive. Still, Sony (SNE) feels the W is good value for the money, given its design, cheery color palette (white, brown, pink!) and screen resolution–at 1366 by 768 pixels, the W’s display is clearly better than that of its rivals.

Said Vaio chief Nicolas Barendson, “We believe that this screen resolution and design offers our customers a better experience, and that it will be popular with both newcomers to the netbook market looking for a quality portable PC at a netbook price point, and customers wanting to improve their existing netbook experience to date by upgrading their screens.”

Sony’s announcement leaves Apple (AAPL) as the lone major computer manufacturer without a netbook offering, a designation it’s likely to keep for the foreseeable future, according to company execs. “When I look at netbooks, I see cramped keyboards, terrible software, junky hardware, very small screens,” COO Tim Cook said back in April, noting that it’s “a stretch” to call a netbook a personal computer. “It’s just not a good consumer experience and not something we would put the Mac brand on…it’s not a space as it exists today that we are interested in, nor do we believe that customers in the long term would be interested in. It’s a segment we would choose not to play in.”

“When I look at netbooks, I see cramped keyboards, terrible software, junky hardware, very small screens,” he explained, noting that it’s “a stretch” to call a netbook a personal computer. “It’s just not a good consumer experience and not something we would put the Mac brand on….it’s not a space as it exists today that we are interested in, nor do we believe that customers in the long term would be interested in. It’s a segment we would choose not to play in. That said, we do look at the space and are interested to see our customers’ respond to it. People that want a small computer so to speak that does browsing and e-mail, might want to buy an iPod Touch or they might want to buy an iPhone. And so, we have other products to accomplish some of what people are buying netbooks for and so, in that particular way we play in an indirect basis.”

Turns out, Research in Motion co-CEO Jim Balsillie feels pretty much the same way. In a recent interview with Reuters, he said the company has no interest in adding a netbook to RIM’s product line. The only netbook Balsillie is interested in is one “you can hold up to your ear and clip onto your belt.” In other words, a BlackBerry. Anything larger just won’t cut it, as a parade of discontinued nonphone portable hardware has already shown us. “These devices don’t work,” Balsillie said. “At the end of the day what we’ve really found is that if [customers] can do it on a BlackBerry that’s what they’ll want.”

Interesting to hear these two companies come out so strongly against netbooks given the current buzz around them. Demand for netbooks is reportedly surging, so much so, it’s singlehandedly bolstering PC sales slowed by the econalypse. Nokia (NOK) is considering entering the netbook market according to Chief Executive Olli-Pekka Kallasvuo. So why are Apple (AAPL) and Research in Motion (RIMM) thumbing their noses at it? Perhaps because they view the netbook as an interim product, a placeholder. Perhaps because they know that the handset is the next computer?

Apple certainly does. The iPhone already runs a spartan version of the company’s OS X operating system. How long will it be before the device is outfitted with a more powerful processor–perhaps one designed by PA Semi–capable of running OS X SL? How long before the iPhone (or its dock) is outfitted with the Mini DisplayPort that will connect it to a monitor? How long before we no longer need netbooks or notebooks because our handsets do it all?

“The Internet is a great phenomena. I don’t see how the emergence of more information content on a network can be a bad thing for the personal computer industry. Will it cause less personal computers to sell? I think quite the opposite. Less copies of Flight Simulator or Encarta?”

– Microsoft chairman Bill Gates, 1994

In January, Wikipedia claimed nearly 97 percent of the visits that Web surfers in the United States made to online encyclopedias, according to research outfit Hitwise. MSN Encarta received 1.27 percent. Little wonder, then, that Microsoft (MSFT) is discontinuing it. The company announced Monday that it would stop selling Encarta software by June and would shut down the encyclopedia’s MSN Web sites on Oct. 31. “Encarta has been a popular product around the world for many years,” Microsoft said in a statement. However, the category of traditional encyclopedias and reference material has changed. People today seek and consume information in considerably different ways than in years past. As part of Microsoft’s goal to deliver the most effective and engaging resources for today’s consumer, it has made the decision to exit the Encarta business.”

Translation: Wikipedia ate our lunch–and our breakfast and dinner too. For evidence, one need look no further than Wikipedia itself, which updated its Encarta entry with the following passage within an hour of Microsoft’s announcement.

“Microsoft announced in March 2009 that they will cease to sell Microsoft Student and all editions of Encarta Premium software products worldwide by June 2009, citing changes in the way people seek information and in the traditional encyclopedia and reference material market as the key reasons behind the termination….Additionally, MSN Encarta web sites will be discontinued by October 31, 2009, with the exception of Encarta Japan which will be discontinued on December 31, 2009.”

Still, the PC industry is feeling the effect of the economic meltdown. “The U.S. home market saw definite softness,” said Gartner analyst Mika Kitagawa. “The global PC market finally felt the impact from global economic downturn.”

The fastest growing computer segment in the quarter: mini-notebooks. “The mini-notebook segment experienced strong growth in the global PC, led by robust growth in the Europe, Middle East and Africa (EMEA) region,” said Kitagawa. “In the North America market, the economic crunch created more interest in the sub-$500 segment. Because the mini-notebook is still a new segment, it is too early to determine if the emerging segment created new market opportunities or if it cannibalized lower priced systems.”

Seems the volatility in the world’s economy hasn’t undermined interest in new PCs so much as refocused it on a new category.

One last point worth noting here, in light of Tuesday MacBook event. Apple (AAPL) continues to exceed industry growth in laptop sales. As Apple COO Tim Cook noted yesterday, “Several quarters in a row, we’ve been growing two to three times the market growth.”

And, of course, it will sooner or later. Certainly, the Semiconductor Industry Association, which provided the sales numbers above, thinks so. Earlier this week, it called on the U.S. House of Representatives to pass the $700 billion financial rescue package before it. “Consumer demand accounts for more than two-thirds of the U.S. economy,” said SIA president George Scalise. “A slowdown in sales of a broad range of consumer products such as personal computers, cellphones, and entertainment electronics would have an adverse impact on semiconductor sales in the fourth quarter, which is normally the strongest quarter for the chip industry. The entire supply chain, including our suppliers and customers, will be harmed if access to credit becomes difficult.”