KEY POINTS:
Mobile phone makers are cramming more features into handsets as they attempt to make them internet-connected replacements for everything from MP3 players to digital cameras.
Apple sparked an industry rush to build the ultimate music phone when it unveiled its iPhone in January.
Along with video calling, web
browsing and mobile games, social networking is also coming to the mobile.
A current Nokia model, the N93, allows users to upload images directly to the Flickr photo-sharing website and record video clips that can be posted to the Vox video blogging network.
Nokia is also undertaking trials of mobile broadcast TV services with state-owned network operator Kordia.
The service allows TV stations to be picked up on compatible handsets, bettering the quality of current mobile TV services, which are sent to mobile phones as streaming video feeds.
The service may see a commercial roll-out next year if Vodafone shows interest in it.
And when the Nokia N95 mobile handset arrives on the market next month it will be the most sophisticated mobile phone available.
It has a five megapixel digital camera capable of recording high-quality still images and video, a music player, high-speed data access and a GPS receiver that will eventually allow satellite navigation.
Owners can download maps for 150 countries to the N95, which will initially have limited use as a navigational aid locally.
"For New Zealand it has a basic level of mapping included," said Nokia's marketing manager Lane Stephens. But the N95 won't be cheap at $1600, which illustrates the reality consumers face with this new generation of advanced phones - if you want a multimedia device in your pocket, you have to be willing to pay.
In true Kiwi style, current buying trends suggest New Zealand mobile customers are after value for money rather than fancy features.
Of the 12 GSM phones recommended by the Consumers Institute in its latest survey, which considers things such as battery life and call quality as important as styling and features, few of the phones were high-end, multimedia models.
Nokia dominates with 50 per cent of the picks, followed by Sony Ericsson with 25 per cent. Operators such as Telecom indicate their best sellers are cheaper with more modest handsets.
Asked to name its five most popular phones, Telecom only came up with four - the Sanyo Diva ($349), Nokia 6235 ($249), Sanyo Pinkilicious ($249), and the entry-level LG NX-225 ($199).
Vodafone won't say what its best selling phones are, but considers its flagship phones to be the new Blackberry Pearl ($899) and Vodafone 1210 smartphones ($599), the Samsung Z400, Nokia 6288 ($699) and the sleek Motorola V3xx ($749).
Telecom spokeswoman Rebecca Earl said the trend was towards "converged" mobile devices, that offered features such as unified address books, high quality streaming content and access to music, photos and email on one device.
"You'll see some mobiles with FM transmitters [that stream music to stereos] and more Bluetooth integrated into mobiles," she said.
She doesn't believe phones will get much smaller, but that accessibility and affordability will increase.