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My Profile Holiday Gift Guide Gift ideas & reviews for this holiday season Start Browsing You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Holiday Gift Guide Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures You Witness The Great Debate Blogs Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters You Witness News Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Nokia takes on rivals with N97 touch-screen phone Tue Dec 2, 2008 1:14pm EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Tarmo Virki BARCELONA (Reuters) - Nokia launched a flagship phone to update its aging high-end offering, but analysts said the device would not be enough on its own to help the world's top mobile phone maker recover lost market share. Nokia continues to lead the global market for smartphones -- handsets with computer-like features such as email -- but it has lost significant share to Apple's iPhone and RIM's Blackberry, worrying investors and analysts as this is expected to weigh on the Finnish group's profit margins. All vendors are after a bigger slice of the smartphone market, which is set to continue growing next year despite gloom in the wider handset market. "Without a doubt Nokia needed a high-end touch-screen phone," said Martti Larjo, analyst at Nordea. The new Nokia N97 handset comes with a large touch screen, will retail for 550 euros ($693) before taxes and subsidies and is due to reach the market by end-June next year. It has promised to introduce touch-screen models across its portfolio. Nokia was the last major handset maker to introduce touch-screen phones after the runaway success of Apple's iPhone, and last month started to sell its first such model. The new N97 is a direct rival to Sony Ericsson's X1 and HTC's Touch Pro -- both of which use Microsoft's Windows software and are in shops already -- and analysts said by the time it goes on sale more direct rivals will likely have appeared. "It might give Nokia a little edge, but it's six months until this reaches the market," said Gartner analyst Carolina Milanesi. CCS Insight's Research Director, Ben Wood, said Nokia had faced difficult choices with the N97. "It tried to cram in lots of different technologies such as a touch screen, full qwerty keyboard and plenty of memory, but it had to make trade-offs in its size and features," he said. "It has ended up with a relatively thick device that lacks some of the benchmark features expected in flagship products in mid-2009," he said. Nokia shares were up 0.2 percent at 10.58 euros by 1415 GMT, broadly in line with the DJ Stoxx European technology index. HIGH HOPES The new phone will retail at a price similar to the previous flagship models N95 and N96 when these were first came to market, and Nokia said it does not expect the high price to hurt sales in the economic downturn. "Our target group, 200 to 300 million technology leaders, in all times buy devices they are interested in," Nokia's head of sales Anssi Vanjoki told reporters, adding he also expects operators to subsidize phones. Continued... View article on single page Share: Del.icio.us Digg Mixx My Web Facebook LinkedIn Next Article: FCC to mull free Internet plan at December meeting Gameworld Videogames on vacation Videogame makers are designing their consoles with the holiday traveler in mind; making them more of an end destination. Full Article Video Nokia goes multi-sensory with N97 Play Video More Video... Related News Nokia sees no impact on N97 from the weak economy 7:09am EST Editor's Choice Pictures Video Articles Slideshow A selection of our best photos from the past 24 hours. 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