Nokia N78
The N78 is being released at the right time, when N73 users are starting to get bored with their phones. The N73 has a decent music player and camera, but hiccups like the lack of a standard audio jack and poor PC-to-web integration were a let-down, even for the most casual users. Luckily, the N78 goes a long way to smooth out those rough edges: the multimedia software is better integrated and more complete. The imaging experience, with its improved camera software, support for geotagging, better PC sync and better online sharing, is great. You can also send your MP3 music to any car stereo or, in fact, any FM radio system. Converging your media formats has never been so accessible.
$808.

Olympus Mju 1010
Hats off to Olympus. They did a great job squeezing a long and well-stabilised 7x lens into a body that’s still small and neat enough to slip into a handbag. Ten megapixels and face detection round off the specs-boast. Image quality is not digital SLR quality but hey, it’s a compact – and like a compact, it underachieves in low light. Aside from that, it’s everything you’d want in a compact and more. Note to Olympus: slap on a wideangle lens, get rid of the proprietary xD-Picture Card format, and you’d have an even bigger seller on your hands.
$529.