Nokia is expected to release its first touch-screen phone code-named "Tube" next week in a direct challenge to Apple's successful iPhone The information has not been confirmed by Nokia and was published by Reuters, citing unamed sources. The "Tube" is expected to be unveilled on October 2 at an analyst and media event in London.

This will be Nokia's first mobile phone equipped with a touch-scerrn display. The company said back in July its touch-screen offering would come this year and be cheaper than rival models in order to tap into a higher-volume market.

Samsung and LG have already been offering touch-screen phones.