Nokia puts pressure on iPhone

30 August 2007

Mobile phone firm Nokia has increased pressure on Apple by announcing it is to launch an online music store and handset to compete with rival technology of the iPhone.

As well as the music store, Nokia has launched the N81, described as 'the jukebox in your pocket', allowing users to download music directly onto their handset.

It has also launched a number of other cheaper handsets with similar digital music capabilities.

It is believed that Nokia's drive to increase their product range is an attempt to challenge Apple's 80% share in digital music market.

However industry experts have criticised the UK's number one handset provider's digital music store for its similarities to services such as those provided by Apple and Orange.

Speaking at a gala event at Old Billingsgate Market in London Olli-Pekka Kallasvuo, Nokia's President and Chief Executive, insisted that Nokia is "truly trying to cooperate with different operators to support and help them manage their strategies".

Mr Kallasvuo also described the industry as being "on the threshold of one of the most opportunity-rich markets of all time."

The news comes as Apple has launched its video downloads service in the UK, allowing users to download episodes of Lost, Desperate Housewives and Ugly Betty for the price of £1.89.

Critics however have claimed that this price is far too expensive, when the same downloads have been available in the US for the equivalent price of just 99 pence.