Nokia unveiled two new budget colour screen handsets for young people and predicted they will help boost the sluggish mobile phone market.
The world's largest mobile phone maker has already unveiled six colour-screen models this year - one with a camera.
Nokia will start selling the 3510i mobile phone in Europe and Africa in the fourth quarter of this year in high volumes while the more advanced 3650 model with a built-in digital camera and camcorder will be available early next year.
The models will strengthen Nokia's portfolio of low-end or budget priced phones, a key segment that accounts for around 70 per cent of all handsets sold globally, and enable the Finnish company to keep ahead of the competition, analysts said.
Shares in Nokia rallied on the news, trading 3.7 per cent up at €13.7 and outperformed the DJ Stoxx European Technology index.
The industry saw annual sales fall in 2001 after years of runaway growth and is at risk of failing to meet a consensus target of 400 million units sold for 2002 unless consumers start upgrading their phones in coming months.