Fancy Cell Phones Are Hot Items This Christmas

It is not merely about the network anymore.

The phone matters - as long as it includes a multi-megapixel camera, music player, touch screen, keyboard, global-positioning system and anything else not necessarily related to calling and answering.

That is where the cell phone industry has gone. It went from a convenient, mobile talking device to something more important - and varied.

It has reached the point where people no longer refer to them as phones.

"The economy is hurting, but electronics will still be on top of people's wish list," said AT&T spokeswoman Gretchen Schultz as she sat across from more than a dozen phones strewn across a conference table.

To her, and to countless other users, they are electronic gadgets first and foremost. They play your favorite songs, tell you the shortest route to the grocery store and allow you to check your e-mail mostly anywhere.

Some of the phones Schultz demonstrated included keypads. Some had touch screens.

She also brought other accessories, such as iTunes gift cards, Bluetooths and Croc cases.

"We can't keep these in the store," Schultz said as she fidgeted with the Motorokr T501. The device has a transmitter that enables users to play their favorite music through the phone's connection with the car stereo. No wires or installation is required.

"It's very popular, but a lot of people haven't seen it," she said.

Since phones began including more services than calling, ringtones and text-messaging, rival companies began trying to one-up the other by adding unique features.

Verizon has its share of new gadgets - including the Blackberry Storm, which includes a touch screen that clicks.

"We can't keep them in stock," Verizon spokesman Chuck Hamby said of his company's version of the Blackberry - sounding almost identical to his AT&T counterpart.

There also is the Voyager, a fold-open phone with a touch screen and video capabilities.

"It's a workhorse," said Hamby. "It's a great, dependable phone. It's a very, very hot item. About 65,000 of them were sold on Black Friday."

Both companies offer $50 mail-in rebates, so all of the phones are on sale this holiday season. With the rebates, the phones range in prices from $49.99 to $199.99, depending on the model and features.

Most phones require a two-year contract.

The device that remains a top seller this Christmas is the phone that forever altered the cell phone industry - the Apple iPhone, which also is sold by AT&T.

Schultz removed it from its box and held it up close to her face.

"This is the most sought-after gift this Christmas," she said. "For someone who wants everything, this is it."

The basic retail price for an eight-gigabyte iPhone 3G is $199. One with a 16-gigabyte hard drive costs $299.