Tech Rumor of the Day: Nokia

In danger of losing its crown as the king of all phones, Nokia(NOK Quote) is sharpening its two-pronged attack on the smartphone market with a cheap phone assault.

As part of the plan, Nokia introduced a low-priced version of its 5800 XpressMusic phone this week. With the terrifically catchy name of 5530 XpressMusic, the new 2.5G or EDGE-network compatible phone is expected to be available by the holidays and is likely to be offered for free in exchange for one- or two-year contracts.

The move toward less capable promotional freebies comes as the Finnish phone shop's flagship N97 $700 smartphone arrived in some reviewers' hands Wednesday. The cheap approach also helped fan rumors of a "mini" N97 that is in the works, presumably a low-end version of the feature-rich original. ...