Nokia readies touch-screen iPhone rival

Company could introduce new handset by 2 October

Nokia may be preparing to launch its first touch-screen phone

Nokia is reportedly preparing to launch a new touch-screen smartphone device.

According to sources cited by Reuters, the handset will be launched at a special event on 2 October in London.

Codenamed Tube, the handset will be the first touch-screen model from Nokia and will compete in the high-end market alongside the Apple iPhone and the latest models from Samsung and HTC.

Since it was first announced in early August, details on the Tube project have been few and far between.

In addition to the touch-screen capabilities, the Tube is said to feature a Wi-Fi connection and support for Java as well as DVB-H mobile TV broadcasts.

The device is also like to be the main vehicle for the Comes With Music service, Nokia's attempt to challenge Apple's iTunes in the mobile music download market.

The service was unveiled in late 2007 and was seen as one of the first strong indications that Nokia was preparing to transform from a strictly hardware manufacturer to a mobile media provider as well.

Gizmodo UK has some leaked images of the Nokia Tube here.