Philips will launch a mobile phone with voice-activated controls later this month.
The Spark VR uses voice-recognition technology that enables the phone to dial a number when users speak the name of the person they are trying to reach.
Philips Consumer Communications, which makes the product, has yet to settle on a price for the phone but it is expected to be between 90 to 100.
The new division, set up in May last year, has two phones on the market: the Fizz, which sells for as little as 10 when linked to network airtime deals, and the standard Spark which sells for around 80.
The Spark VR has the capability to send faxes and will also be able to access the Internet.
Managing director Bernard Wollaston says the division will launch two more products before the end of March.
Philips entered the 10bn global mobile phones market as a means of stimulating its overall growth.