Nokia to rival iPhone and iTunes

Nokia will next month launch its first touch-screen phone in a bid to challenge the Apple iPhone. From next year, the new handset will also feature unlimited music downloads that will rival iTunes.

The Nokia 5800 XpressMusic will have eight gigabytes of memory, maps and satellite navigation. It will sell in Europe this quarter for nearly $400 (£226).

Nokia is also planning to challenge iTunes’ monopoly within the digital music sector with the launch of its “Comes with Music” service next year. The service will allow pay-as-you-go phone users free and unlimited music downloads for 12 months.

Music companies and independent music labels have signed up with Nokia to offer their soundtracks. The total number of songs available for download is expected to be about five million tracks.

The service will also be offered on other models including the N95 series at a later stage.

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