Nokia's Do-Everything Phone

The handset maker is betting on the multimedia, Web-prowling, map-navigating N95 to take market share from Motorola—and even from iPhone

If Nokia had its way, you would throw away your iPod, your digital camera, maybe even your PC and TV—and certainly all those road maps cluttering the glove compartment of your car. Instead, you would own a Nokia (NOK) "multimedia computer" that not only makes phone calls but also does the work of a host of other digital devices, including a GPS navigator.

The Finnish handset maker hasn't quite sold the general public on its vision of mobile phones as do-it-all communications portals—yet. But Nokia's N95, its current, top-of-the line, multimedia handset (which launched in the U.S. in April) shows how determined the company is to become the center of people's digital universe.

"It's very important in terms of showing the world and leading consumers what can actually can be done," says Anssi Vanjoki, Nokia executive vice-president in charge of the company's multimedia business unit, which will likely book revenues north of $13 billion this year. "You can expect these features will become more standard over time."

Nokia won't divulge sales figures, but early indications are that the $750 N95 is a hit with the technophiles it's aimed at. As the leading edge N Series phone, the N95 certainly takes some of the credit for the gains in sales of high-end, multimedia handsets that have been helping Nokia take market share from rival Motorola (MOT). And a perusal of N95-related blogs shows that the product is generating significant discussion, as well as a fair amount of enthusiasm. "It should be a flagship product for Nokia," says Jari Honko, deputy head of research at eQ Bank Limited in Helsinki.