Nokia will introduce a new touchscreen handset, code-named Tube which will increase competition with Apple's iPhone.

Nokia made the announcement during the Evans Data Developer Relations Conference and discussed the features of the device.

The Internet tablet in Nokia's touchscreen devices has a full Internet browser with Flash support.

Forum Nokia's vice president, Tom Libretto said the Tube will have Java built in as a standard to better compete with Apple's current iPhone.

The tube will also support the DVB-H mobile TV standard for Europe and mobile videos, with capabilities to upload photos to the Web as it will have built-in Wi-Fi or HSDPA connectivity.

Nokia currently holds a competitive advantage over Apple, in Europe, and the introduction of an iPhone-like device will allow the firm to strengthen its business in the region.

Nokia's announcement coincided with Apple's plans to release the next version of an iPhone, a 3G device that could allow Apple to gain more market share in the U.S. and Europe.

Apple and Nokia are very close competitors with each having better device features than the other.

Taking an example of an iPhone, it has a two-megapixel camera that takes clear shots but doesn't have flash and Nokia has devices that offer a five megapixel camera with Carl Zeiss optics but with relatively low shutter lags, auto focus and a flash.