WRAPUP 1-Nokia, Samsung heat up smartphone contest

* Nokia launches 3 phones

* Nokia touch-screen music phone to sell for 199 euros

* Samsung unveils "Jet" model

By Tarmo Virki and Marie-France Han

HELSINKI/SEOUL, June 15 (Reuters) - The world's two largest cellphone makers, Nokia (NOK1V.HE: Quote, Profile, Research) and Samsung (005930.KS: Quote, Profile, Research), unveiled on Monday new phone models, offering features comparable to iPhone and Palm's Pre, but at lower prices.

In the last two weeks Apple's (AAPL.O: Quote, Profile, Research) launch of an updated version of iPhone and Palm's (PALM.O: Quote, Profile, Research) Pre model have heated up competition in the shrinking industry.

The cellphone market volume is expected to fall around 10 percent this year as recession dampens consumer demand, but the market for so-called smartphones is seen still rising 10-20 percent as consumers look for capable devices.

"Consumer demand for more capable devices seems to be accelerating despite the general economic doom and gloom," said Ben Wood, research director at CCS Insight.