Nokia to take on Apple's iPod player

The world's top mobile phone maker Nokia planned to launch its free music package yesterday, which analysts see posing a serious threat to Apple's dominance in the digital music business.

The Finnish company will also launch its first touch-screen phone, to rival Apple's popular iPhone, sources have told Reuters.

Nokia's "Comes with Music" phone and music service, and similar packages from other hardware vendors, could help the music industry make up for falling CD sales and cut illegal downloads.