Nokia has unveiled new premium phones which include a headset with an MP3 music player - which it hopes will outsell Apple's hugely successful iPod.
The new devices also include a camera phone which Nokia forecasts will surpass Canon, the world's top digital camera maker.
The world's top mobile phone maker expects its new luxury "Nseries" handsets, which feature built-in hard drives and high-quality camera lenses, to boost sales by differentiating it and increasing its industryleading margins.
Chief executive Jorma Ollila said Nokia would sell 25 million smartphones - handsets that offer limited PC-type functions like email - or more than double the 12 million it sold in 2004.
He also said at a company event in Amsterdam that the company expected to ship 100 million camera phones in 2005, and that Nokia would sell 40 million phones with MP3 digital music players this year.
By comparison, Apple said it sold 5.3 million iPods in the first three months of 2005 while Canon was the top seller of digital cameras in 2004, with 17 per cent of the global market of 74 million units, according to research firm IDC.
Nokia's N91 multimedia phone will have a 4-gigabyte hard drive that can store thousands of music files. The phone is due out by the end of the year.
The N90 and the N70, will have two-megapixel cameras with high quality Carl Zeiss lenses.