A new device that is rumored to compete with the Apple iPhone is reportedly being developed by Nokia. The device is code-named Tube and is said to be available in the second half of 2008. According to Nokia spokesman, Kasey Farrar, the device, due in the second half of the year, will be the first phone with a touch-based interface on the most recent Symbian OS, called the S60. He said Nokia has already released more than a dozen touch-based wireless devices running on Linux, such as the N810 and the N800.

Some reports indicate that Forum Nokia Vice President Tom Libretto, spoke at the Evans Data Developer Relations Conference in Redwood City, California on Monday and announced that the Tube will support Java and allow photos to be uploaded. However, confirmation of what Tom Libretto said could not be had, only that he appeared at the Conference.

The iPhone has sold 4 million as of January compared to the number of phones Nokia sold globally last year, which was 60 million converged devices (contained voice, camera or MP3 player) and total sales of 437 million wireless devices, according to Farrar. The majority of the iPhone’s sales have thus far been in the U.S. because it was released there first.  Farrar indicated that the majority of Nokia’s sales are outside the U.S., and that Nokia has a 53% market share for wireless devices globally.

Regarding the challenge iPhone has given Nokia and other device makers, Farrar said that the "iPhone has not been a headache at all for us, and it actually validates our current strategy with converged devices in our N and E series."