Nokia 5800 Xpressmusic to rival Apple's iPhone

Nokia 5800 Mobile Phone

Nokia is launching its first touch-screen phone 5800 Xpressmusic to rival Apple's popular iPhone.

Nokia has said it would soon start selling the phone at 279 euros ($395) excluding subsidies and taxes, roughly half the price of the other main touch-screen phones on the market. 

This could mean that customers may get the phone for free from operators when signing up for a contract.

Nokia said all major music labels and most independent labels will offer their tracks as part of Nokia's 'free' music bundle "Comes with Music."

Nokia's package will differ from others on the market since users can keep all the music they have downloaded during a 12-month subscription period. Nokia said it will also offer 18-month package together with operators on some markets.  There are no charges for tracks downloaded as the cost is bundled to the phone price.

Given the codename, Tube, it's fair to suggest Nokia sees it as a mobile video platform. And with the DVB-H mobile digital TV standard now starting to gain momentum, Tube will probably be a handheld telly too.

The device looks like the iPhone’s long lost twin, except for a Nokia logo stuck underneath the handset’s earpiece. The Tube’s display doesn’t look as wide as the iPhone’s, but appearances can be deceptive. Nokia's design also lacks the iPhone's 'home' button.

Unconfirmed reports suggest Nokia's would-be iPhone killer will run on the Symbian S60 platform.