Nokia Oyj, the world’s biggest maker of mobile phones, unveiled a touch-screen handset with unlimited music downloads, challenging Apple Inc.’s iPhone and iTunes.

The Nokia 5800 XpressMusic device has 8 gigabytes of memory and is equipped with maps and satellite navigation, the Finland-based company said Thursday. It will sell for $386 without subsidies or taxes. Versions with free downloads will be available later in 2009.

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