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Careful, iPhone users: Your smart phone may be smarter than you think.

On Thursday researchers at Finnish cybersecurity firm F-Secure said they have spotted the first known instance of iPhone "spyware" called Mobile Spy, a piece of commercial software that sells for $99 a year.

Mobile Spy developer Retina-X Studios says the software can invisibly track the call logs, text messages and even the GPS data of any iPhone it's installed on, allowing the eavesdropper to track the user's whereabouts on a Web site that hosts the stolen data.

"Mobile Spy will reveal the truth for any company or family," the company's site advertises. "You will finally learn the truth about [your family members' or employees'] call, mobile-Web and text-message activities by logging into your Mobile Spy account from any computer. The world's first iPhone spy software!"

Smart phone spyware for other platforms isn't new: Commercially available spyware for Windows Mobile and Symbian operating systems have existed for years. But Mobile Spy's software is the first spyware vendor to target Apple's (nasdaq: AAPL - news - people ) growing marketshare in the telecom world.

While Mobile Spy currently targets only iPhone 3G users, another vendor known as Flexispy advertises a similar program that is compatible with both iPhone versions launching Dec. 21. Both programs require the user to "jailbreak" their targets' iPhone, a simple software hack that allows applications not approved by Apple to be installed.

Since before the iPhone's 2007 launch, cybersecurity researchers have been warning about the potential for malicious software that could secretly install itself to steal passwords or use the iPhone to send spam--just as cybercriminals have long been hijacking PCs (see "Hacking the iPhone"). While hackers have demonstrated those kinds of exploits in theory, "in the wild" threats have yet to appear. And cybercriminals aren't likely to use commercially available software like Mobile Spy and Flexispy to infect victims via the Internet.

The device maker is expected to announce a major new product Tuesday.

At Nokia, the clock is ticking.

The Finnish mobile communications giant is poised to make a major announcement Tuesday at its Nokia (nyse: NOK - news - people ) World conference, a point underscored by a large countdown timer on the company's Web site.

Time is running out for Nokia in other ways. Though the company still reigns as the world's largest cellphone maker, some analysts say it has fallen behind Apple (nasdaq: AAPL - news - people ), Google (nasdaq: GOOG - news - people ) and Research In Motion (nasdaq: RIMM - news - people ) in terms of mind share. Nokia is clearly using its two-day conference to generate some buzz.

Speculation is rampant online with most guessing that the announcement will be a high-end phone that combines a touchscreen with a Qwerty keyboard. Such a device would be a first for Nokia, which just began shipping its first touchscreen phone, the 5800 XpressMusic. A special link on the Nokia World Web page that teases upcoming news about the "Nseries in 2009" offers subtle confirmation.

Other guesses making the rounds include a netbook or laptop, a motion-sensing device that can be controlled by gestures and an N-series device running S60, the latest version of the Symbian operating system.

Given the company's new emphasis on software, the announcement could also concern Internet services, possibly something related to mobile social networking.

In a research note released today, UBS (nyse: UBS - news - people ) analyst Maynard Um backed the idea of a small notebook or tablet PC. Citing unnamed sources, Um outlined a device that would sell for more than Nokia's $408 N810 tablet and include a touchpad, Linux-based operating system and wireless technology that supports mobile wallet and ticket services.

Finnish handset-maker Nokia exited Japan on Thursday, jettisoning a tiny slice of a dwindling market as it admitted defeat in the face of the global financial crisis.

"In the current economic climate we have been forced to sharpen our business focus," a Nokia (nyse: NOK - news - people ) representative told Forbes.com. The handset maker will stop selling phones and end marketing activities in Japan, a decision which is likely to cost about 50 jobs. About 350 employees, mainly researchers, will stay on. The company will also continue selling its ultra-high-end range of "Vertu" phones in Japan: these luxury handcrafted phones are tailor-made for recession-proof buyers, at around $5,000-$10,000 a pop.

The news did not come as a surprise -- Nokia's market share in Japan was barely 1.0%. Japan is a very mature market, dominated by local manufacturers and network operators like NTT DoCoMo (nyse: DCM - news - people ). Consumers also have little desire to upgrade and replace their phones. With the country in recession, Nokia was unlikely to want to plow more money into a sinking ship.

"Nokia has bigger opportunities in other markets," said Carolina Milanesi, an analyst with Gartner Research, "not in a shrinking market like Japan."

Shares of Nokia were up 2.0%, to 11.34 euros ($14.63), during afternoon trading in Helsinki on Thursday. Swedbank analyst Jan Ihrfelt did not think the announcement would influence investor sentiment; he told Forbes.com that even rivals like Sony Ericsson were having difficulty making progress in Japan.

A representative of the joint venture between Sony (nyse: SNE - news - people ) and L.M. Ericsson (nasdaq: ERIC - news - people ) said there were no plans to shelve activities in Japan. But she admitted there would be a "shift" to a more research-focused business, creating a "center of excellence" for high-end handset development.

Also on Thursday, Nokia said it had begun shipping its answer to the Apple (nasdaq: AAPL - news - people ) iPhone: its touch-screen 5800 model. Although most of Europe and the United States will have to wait till 2009 before they get their hands on it, markets including Russia, India, Hong Kong and Spain will have the phone before the year is out. As Forbes.com revealed last month, Spanish network operator Telefonica (nyse: TEF - news - people ) will offer the 5800, as well as the iPhone, in Spain.