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Nokia Launches Free Song Service

Oct 3, 2008

LONDON - Nokia, the world's top mobile phone maker, launched its free music service yesterday, issuing a challenge to Apple Inc.'s dominance of the digital music market.

The Finnish firm also launched its first touch-screen phone 5800 Xpressmusic to rival Apple's popular iPhone. Nokia said it would start selling the phone for 279 Euros ($399 U.S.) excluding subsidies and taxes, which it said was roughly half the price of the other main touch-screen phones on the market.

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

"The price and positioning of the product may result in substantial demand and will undoubtedly put some pressure on Apple," said Ben Wood, research head at CCS Insight. Apple controls slightly more than half of global digital music sales through its iTunes store.

Nokia said major music labels and most independent labels will offer their songs as part of Nokia's `free' music bundle "Comes with Music."

There are no charges for tracks downloaded as the cost is bundled to the phone price. Analysts and music industry players said Nokia's offering could bring free music to millions of consumers and change the music industry significantly.

"Apple's days of dominant digital music retailer outside the United States are numbered, if they don't do anything radical," said Rob Wells, head of Universal's digital music business.


 

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