Nokia Takes On The iPhone

Handset maker unveils flashy touchscreen phone with full Qwerty keyboard and raft of Web services.

Until now, the leading contenders for the title of coolest smartphone were Apple’s iPhone, Research In Motion’s BlackBerry and Google’s G1.

On Tuesday, Nokia (nyse: NOK - news - people ) enters the race with the N97.

The sleek handset, which pairs a large touchscreen with a full Qwerty keyboard, may be the Finnish company’s boldest yet. There’s a tilting touchscreen display, which rests on a kickstand-like hinge. A customizable home screen that can be personalized with widgets. And a group of Internet applications that let users toggle between e-mail, instant messaging programs, maps, photos, music and videos. Nokia is calling it “the world’s most advanced personal computer.” It will go on sale in the first half of 2009 for around $700. No carriers have been announced yet.

The company’s broader vision, which it plans to outline Tuesday at its annual Nokia World conference, is to create devices, software and services that promote a personalized version of the Internet. The “personal Internet” will know who users are, what they are doing and where at any given moment, says Bill Plummer, a vice president with Nokia Americas. This information could be made public or restricted to friends and family, he adds.

Nokia is also continuing to refashion itself as an Internet services firm with the launch of two Web applications under its Ovi brand. Maps on Ovi is an update of Nokia’s current mapping service, complete with weather forecasts and 3D images of landmarks around the world. Travelers can plan trips in advance on a regular computer and upload the maps to a mobile device as well as save and share routes. The other new application, Nokia Messaging, will let users manage their e-mail and instant messaging accounts from one menu.

The real headliner, of course, is the N97. Though Nokia already rules the global handset market, with an estimated 1 billion people currently using its devices, it could use a touchscreen hit. It unveiled its first touch handset, the 5800 XpressMusic, in early October, more than a year after the iPhone debuted.

During the 5800 launch, Nokia carefully sidestepped comparisons to the iPhone. This time around, it’s welcoming them. At a pre-launch event in New York, Plummer noted that the N97 supports Flash and Flash video, enabling “real Internet browsing--unlike some phones”--a not-so-veiled jab at the iPhone.