Nokia working on iPad rival

The mobile phone maker is tipped to be working on a new tablet computer due to be released later this year, analysts have said.

According to a report by news agency Reuters, "many other" handset makers and PC vendors, including Samsung and Hewlett-Packard are expected to follow Apple's move into the tablet market.

"You don't want to give that much of a lead to Apple because it otherwise becomes insurmountable," said Ashok Kumar, analyst with Rodman and Renshaw. "Right now the supply chain (for a Nokia tablet) is being primed up for a fall release. It has to be on the shelf by September-October to meet demand for the holiday window."

Kumar believes that the device would use Windows software, but several other analysts said it may use the MeeGo operating system, which is the result of a software venture between Nokia and Intel.

"MeeGo is probably aimed mostly at the tablet market. I don't think Nokia or Samsung can afford to stay out of the tablet market," added Tero Kuittinen, analyst at MKM Partners.

Nokia has so far declined to comment.

Nokia 770 internet tablet pictured