The handheld combines advanced hardware features with a bundle of services, including assisted GPS, which are intended to merge the device tightly with location-based applications, social networks and the mobile Web. The company also unveiled an improved Nokia Maps service and a new Nokia Messaging service, both part of its Ovi online services set.

Some of the drawbacks: early consensus is that the N97's touch interface is not quite up to fluidity of the iPhone standard; it's pricey (nearly US$700 without a carrier subsidy); and won't be available in the United States until sometime after mid-2009.

Besides the iPhone, rivals include Research in Motion's just-introduced and two Windows Mobile smartphones, the Sony Ericsson X1 and the HTC Touch Pro.

N97 users can create a customized home screen with the widgets of their preferred Web services and social-networking sites. The Nokia Web browser, unlike Apple's Safari browser on the iPhone, supports Flash and Flash video. The combination of the touchscreen and a full slide-away QWERTY keyboard (the iPhone uses a virtual keyboard) is intended to unite an intuitive touch interface with the thumb-driven keyboard for heavy duty texting and e-mail.

Online video is available, including from Engadet.com, at Nokia World 08, the annual conference this week in Barcelona, Spain.