Nokia challenges iPhone 3G with N96 and E71

Apple might rule the headlines for the coming weeks, but let’s not forget who takes the cake for smartphone market share worldwide: Nokia.  Granted, this all may change in a month’s time after Apple’s iPhone 3G hits 22 markets worldwide and sells for next to nothing on certain carriers, but what really matters to investors is stock price.  Currently Apple is at $181.61 per share, down 2.17% while Nokia is at $26.61 and up 1.84%, but that was yesterday and there are weeks before the public has a chance to explore the future of the iPhone 3G in the smartphone community and determine if $199 is the price point for success in a recessing US economy. Nokia’s SVP Anssi Vanjoki does not seem worried about the success of iPhone 3G and was reported as saying,

Convergence will strengthen through such a significant company such as Apple coming to that field. From the perspective of operator business this is an extremely good issue.

While Vanjoki seems calm and worry-free about Apple’s iPhone 3G, the analysts are starting to wonder what the future holds for Nokia.  American Technology Researcher has downgraded the Finnish handset maker from “buy” to “hold” with the following warning,

Nokia will face increasing competition from new third-generation smart-phone introductions in the second half of 2008 and early 2009. We do not recommend new money until we get a competitive response from Nokia.

Nokia has a simple answer to the analysts and it resides in two flagship handsets, one of which we saw back at MWC 2008 in Barcelona; the Nokia N96 and the E71.  While the E71 has only been leaked onto the Internet and the details are limited, Nokia hopes to launch both the E71 and N96 in Q3 2008, but will they be too late? Will Apple take the shine away from Nokia’s lineup even with its 5 megapixel cameras and ultra-stable S60 OS?

We might be biased in saying this, but in our minds the Nokia lineup is for an entirely different community than the iPhone 3G.  The N96 will always have a place in the pockets of the photo enthusiast wanting the latest technology, terrestrial video broadcasts and a completely open platform.  The iPhone 3G is not going to be as appealing to someone who has been using a 5 megapixel camera with geotagging for the past year and relies on the front facing camera for video calls.  The problem with our views is that analysts are focusing on Apple’s biggest market, the US while Nokia dominates on a global level and clearly suffers from the slow adoption of technology in the states.  While the rest of the world enjoys the cutting-edge technology of Nokia handsets, much of the US has never heard or even seen the power of a N95 5 megapixel Carl Zeiss lens and if Apple has it their way, they never will.

Nokia N96 Specifications:

[TABLE=9]

Apple iPhone 3G Specifications:

[table=5]

Nokia E71 Specifications:

[table= 6]