Nokia unveils showy phone models

HELSINKI, Finland — Nokia Corp. introduced several new models Monday, including its first flip phones, catching up with competitors who have eroded the company's dominance in cellular handsets with the popular clamshell models.

Chief executive Jorma Ollila said the company, which has acknowledged losing market share of late, had completely revamped its offerings and strategy.

"We have reviewed the timings and pruned our portfolio, adding some new products and accelerating others — and during this process, we have even killed some product plans," he said.

The model Nokia exhibited most prominently during its announcement Monday was advertised as the world's smallest 3G, or third-generation, phone — the 6630.

At just 4.5 ounces, the 6630 features a 1.2-megapixel camera and an MP3 player and will support Internet transmission at 40 times the speed of technologies currently deployed, Nokia said.

The other high-end model, a clamshell 6260 with a swiveling flip, features a video recorder, Web browser, e-mail and VPN, with Bluetooth network and an optional wireless keyboard.

On the low end — a segment Nokia has not been known for — the Finnish company introduced the 2600, with a full-color display and handsfree speaker. In a nod to its rivals, Nokia also announced the 2650, a similarly equipped low-end flip phone, that has GPRS connectivity.

All the new models are expected to be in stores in the last three months of 2004.

Analysts called Nokia's latest move the first indication that the phone giant is mimicking competitors rather than setting the standard in design and consumer preference.

"It is not enough for Nokia to release phones that are equal to those of its competitors. It must do better than that," said Mikael Tornwall, an analyst at Dagens Industri.

Monday's announcements caused little stir among investors, and Nokia shares fell 2 percent to 11.66 euros ($14.03) in trading on the Helsinki Stock Exchange.

Nokia recently slashed prices for several models already on the market, following the lead of competitors whose phones have been consistently cheaper.

And while other cell phone manufacturers have been increasing their share of the global market with almost miniature flip phones, high-resolution color displays and increasingly hip styling, Nokia has been perceived as the vendor of robust reliability.