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Nokia unveils rival to Apple's iPhone

LONDON
Thu Oct 2, 2008 1:43pm EDT

LONDON (Reuters) - Nokia unveiled on Thursday its first touch-screen phone, priced well below Apple's iPhone model, as the world's top mobile phone maker hopes to tap consumers for whom the iPhone has been too expensive.

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Nokia said it would begin selling its 5800 Xpressmusic model shortly, and will price it at 279 euros ($395), excluding subsidies and taxes.

The price tag means consumers in many large markets will get the phone for free from operators when signing up for a contract.

Prepaid prices for iPhone at Britain's largest retailer Carphone Warehouse start from 350 pounds ($624), including 17.5 percent value-added-tax.

So far Nokia has stuck with traditional screens while LG Electronics, Samsung Electronics and several smaller handset vendors have rolled out their own touch-screen phones over the last two years.

(Reporting by Tarmo Virki; editing by Elaine Hardcastle)
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