The world's largest handset maker, Nokia unveiled on Thursday its first phone running on Linux software, aiming at improving its offering at the top end of the market.

"As Nokia announces the software platform that will drive its future services aspirations it created a dedicated solutions unit -- the challenge will be to ensure that all these elements work in harmony in the face of fierce competition from Apple and Google,"

said Ben Wood, head of research at CCS Insight.

The new N900 model, with cellular connection, touch screen and slide-out keyboard, will retail for around 500 euros ($712), excluding subsidies and taxes.

Nokia said Linux would work well in parallel with Symbian in its high-end product range.

"Open source Symbian is going to be our main platform, and we are expanding and growing it the best we can, both in terms of functionality as well as distribution ... populating more and more of our product line with Symbian,"

[via reuters]