Update: check out some actual pictures taken with the Nokia N97, incredible quality, to say the least.

Nokia has just announced its newest N-Gage N97 “handheld computer” smartphone. The device is the upgrade to the N96. The N97 is also the very first Nokia N-Gage phone to have a full QWERTY keyboard. Other impressive features of this nice phone include a digital compass, 32gb of internal memory (expandable up to 48gb), DVD video capture, a 5MP camera that takes images up to 2584 x 1938px in JPEG (16.7 million/24-bit color), and a whole lot more.

Nokia has developed a new widget like platform on the home-screen that can remain always on (without your screen turning off), giving you instant access to your favorite sites including Facebook and other social networking sites. You’ll also receive messages as they come in. The Nokia N97 also has A-GPS and with its electronic compass, the device can easily update and share your location with pre-approved friends.

The Nokia N97 will ship before the end of Q2 2009 and will cost $700 USD.