Nokia's slide won't be stopped by the N8

Nokia Oyj just released an awfully sweet little camera. It fits into a shirt pocket and features a 12 megapixel sensor, xenon flash and Carl Zeiss lens.

If only the rest of the wireless phone wrapped around it, the new N8, were as good.

The world's largest smartphone maker has a lot riding on the N8, which it's rolling out worldwide, starting this month.

New Zealand consumers can expect the N8 in time for Christmas.

Telecom said it would have the device on the shelves for $1099 but it was likely to be cheaper for customers signing up to a Telecom mobile plan.

Last night a Vodafone spokesperson said it did not have a firm date for a launch but said it was "looking closely at it".

Finland-based Nokia has been haemorrhaging market share - down to 37.4 per cent in the second quarter from 45 per cent a year earlier - recently replaced its chief executive and has announced the departures of two key managers.

The N8 represents Nokia's biggest effort thus far to right the ship. And, though it improves on previous offerings, it doesn't come close to matching the state of the art as defined by Apple's iPhone 4 and the best devices from Motorola, HTC Corp and Samsung that use Google's Android operating system.

Smartphones rise or fall on their hardware, software and the apps and services available.

The N8 does well on the first and decently on the third, but where it falls short is on No. 2.

The N8's software, called Symbian^3, is an updated version of the software that's been powering Nokia phones for several years.

But "updated" isn't the same as "up to date" and, while it has some nice touches, it's still behind the times. For example, when you write an email or send a text message and hold the phone upright, the touch screen defaults to a telephone-style numeric keypad.

For some users, that will be a trip down Wireless-Phone Memory Lane, back to those halcyon days when typing the letter "s" meant hitting the "7" key four times.

Most people, however, will probably be annoyed at always having to flip the phone sideways to get a QWERTY keyboard.

The N8 also sometimes requires you to go through a multistep process to perform what ought to be a simple task. Answering an email, for instance, requires you to first hit an Options button, then choose Reply from a menu.

And the software feels sluggish at times, such as when sliding between the three available home screens.

Physically, the phone is mostly impressive.

The scratch-resistant, anodized-aluminum case makes it both look and feel like a premium product.

The phone feels solid and good in the hand and, at 4.8 ounces, weighs just about the same as iPhone 4, even though it's thicker.

The reason for that extra thickness is also the most impressive thing about the N8: the camera, which protrudes slightly from the back.

It's among the best I've seen in a mobile phone, not only for its resolution but for its operation in both idiot-proof mode (when I was using it) and under manual control.

The N8 also shoots 720p video - it includes an HDMI port and adapter cable for viewing on a high-definition TV - and has a front-facing, lower-resolution camera as well for video calls.

I found the 9cm screen acceptable but nowhere near as good as the displays found on Apple and Samsung handsets.

The N8's battery was able to get me through a full day of moderate to heavy use.

Good thing, because - like the iPhone, and unlike just about every other smartphone, the battery isn't replaceable by the user.

In Apple's case, the non-swappable battery is a reflection of Steve Jobs's desire to control the entire user experience.

Here, the decision just seems eccentric, like Saab putting the ignition switch next to the shifter.

Nokia can't compete with the iPhone and Android devices in terms of the number of available applications.

Still, I found its Ovi services - which include a very good mapping application, calendar and mail, among others - to be thorough and well-integrated into the N8.

The N8, while an improvement on what's come before it, still isn't good enough to staunch Nokia's bleeding.

- BLOOMBERG