Nokia rumoured to be working on iPad rival

Nokia is rumoured to be developing a tablet device to rival the iPad which it will release later this year.

Ashok Kumar, an analyst at Rodman & Renshaw, claimed in a Reuters report that Nokia is gearing up its supply chain for an autumn launch.

"It has to be on the shelf by September-October to meet demand for the holiday window," he said.

Nokia was contacted about the reports, but said that it "does not comment on rumour or speculation".

However, principal Ovum analyst Adam Leach agreed that Nokia is likely to be preparing a tablet product, given the fact that Apple had primed the market for such devices.

"Apple's move with the iPad will no doubt lead to the creation of many more 'me too' devices from other manufacturers in this area. Nokia already has the right software with its MeeGo platform developed with Intel for a tablet device," he said.

"Nokia already has tablet devices like the N800 and N700, but Apple has made the market more aware of these types of products. Nokia could also benefit from Apple's refusal to run Flash by offering a device that supports the format."

Steve Hilton, lead analyst for enterprise programmes at Analysys Mason, was more sceptical about the success of Nokia in the space, arguing that a second generation of tablets would come from laptop rather than smartphone manufacturers.

"Nokia will be as successful offering a tablet as Rolls Royce offering low-end discount cars. Look to the PC manufacturers like HP, Lenovo and Dell to find 'me too' success in the tablet market," he said.

Hilton believes that Apple has stolen a march on its competitors, and that other manufacturers will be playing catch-up for several years to come.

"I expect other manufacturers to find success, but to lag market share for years. There are alternatives to the iPod but, even after five years, Apple is the dominant MP3 player on the market," he said.

HP has already announced its move into the tablet space with its Slate device, which includes front and back cameras, video-calling functionality, additional memory storage and Flash support.

Apple claims to have sold 300,000 iPads on its first day, but many users have already reported problems with the product.