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The N-97 has the touch screen popularized by Apple Inc.'s iPhone, a real keyboard that appeals to users of BlackBerrys and Nokia's own E-Series devices, and fast Wi-Fi Internet access to complement third-generation broadband access.

The phone also has an accelerometer, a widget-friendly OS, a still and videocamera and a 3.5 inch screen.

But other analysts don't think the phone will do much to help Nokia avoid what's expected to be a 1% to 9% industry-wide decline in sales next year.

"[Nokia] tried to cram in lots of different technologies such as a touch screen, full qwerty keyboard and plenty of memory, but it had to make trade-offs in its size and features," CCS Insight's Research Director Ben Wood told Reuters. "It has ended up with a relatively thick device that lacks some of the benchmark features expected in flagship products in mid-2009."

Said Gartner analyst Carolina Milanesi: "It might give Nokia a little edge, but it's six months until this reaches the market."

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