Samsung, Nokia heat up smartphone contest

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London: The world's two largest cellphone makers, Nokia and Samsung Electronics Co Ltd, unveiled new phones on Monday, offering features comparable to iPhone and Pre, but at lower prices.

In the last two weeks Apple Inc's launch of an updated version of iPhone and Palm Inc's Pre model have heated up competition in the sweet-spot of an otherwise shrinking industry.

"What is clear is that we are heading to one of the most competitive fourth-quarters we have had," said Gartner analyst Carolina Milanesi.

The holiday fuelled fourth quarter is usually the strongest sales season for handsets and vendors launch their top models in time to reach the sales peak in October-December quarter.

The cellphone market volume is expected to fall about 10 per cent this year as recession dampens consumer demand, but the market for so-called smartphones is expected to rise 10 per cent to 20 per cent, boosted by new and attractive models from many of the top vendors.

"Consumer demand for more capable devices seems to be accelerating despite the general economic doom and gloom," said Ben Wood, a research director at CCS Insight. "Samsung and Nokia are playing smart by offering these sorts of products at punchy price points."

Samsung revamped in one go its smartphones portfolio, unveiling four new models to its Omnia range -- the Omnia II, the OmniaLITE and two OmniaPRO models, all using Microsoft Corp's Windows Mobile software.