20th September 2004 - Nokia and Research In Motion have each launched new smartphones in recent days, in a bid to spur sales in this closely-watched, and growing mobile phone segment.

Though it's too early to tell for sure, at least one of the new phones looks like a winner.

Research In Motion's latest BlackBerry, the 7100t, packs all of the wireless e-mail functionality of its well-known predecessors. But the 7100t marks a radical change for RIM. The new BlackBerry sports the look and feel of a regular mobile phone at a more mainstream price.

Key features of the 7100t include:

--New keyboard design with SureType technology that accurately guesses intended words

--A form factor that fits in a pocket quite easily

--Vivid color display

The price, though not cheap, is attractive at $199. It will be available from T-Mobile starting in early October.

By contrast, Nokia's 9300 is a slimmed-down version of its Communicator handset model - the one dubbed derisively as the "brick."

The 9300, however, does offer some improvements over its predecessor. It's lighter by a couple of ounces, has the BlackBerry Connect e-mail client, and Bluetooth.

On the downside, it does not have Wi-Fi capability. And its price will be tough to swallow when it becomes available early next year: $847 (before subsidies). (Note: Nokia does plan to offer its 9500 model with Wi-Fi and a built-in camera starting in November.)

The 9300 is clearly aimed at corporate users who like a full keyboard, larger display (revealed when turned on its side and opened like a laptop), and can handle the high price. But given that price, and its overall rather large size, the 9300 is not going to win many mainstream users.

On the other hand, RIM's 7100t is aimed at giving new competition to palmOne's Treo 600 device, and bringing the smartphone category to new buyers in the mid-tier price range. Indeed, it has the look of a winner.

But RIM must know this battle is just getting started. PalmOne is rumored to be coming out with the new Treo 650 later this year, and it will likely have competing features to RIM's 7100t. And Nokia has other, lower-priced smartphones in its portfolio to keep it engaged for the long haul.

These new handsets are part of a wider smartphone trend, which was highlighted recently in the In-Stat/MDR report "Smartphones Rising: 10 Things You Should Know About This Segment" (Report No. IN0401702WH). As the report points out, the smartphone market is still just emerging from a niche segment. In the next 12 to 18 months, volumes are expected to rise to significant levels, as prices continue to drop, and wireless data networks improve on speed and efficiency.

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