Former Nokia software team unveils first smartphone

A group of ex-Nokia software developers has unveiled its first smartphone, aiming to prove their former employer wrong by making a success of a technology dropped by the Finnish mobile phone maker.

Jolla was founded by Nokia's former MeeGo software team that was shut down after the company decided to switch to Microsoft's Windows Phone software in 2011.

With just 70 employees and €11 million (A$14.4 million) in venture financing, Jolla joins a handful of boutique operating systems such as Ubuntu which together have less than a 1 percent presence in the mobile phone market.

Jolla chairman Antti Saarnio said Jolla's openness in allowing users to download Android apps would differentiate it from others. He said the dominance of the top two players wasn't necessarily permanent.

"In the long run, if someone brings fresh and new ideas, eventually, the market changes."

The new Jolla phone, priced at €399, runs on the MeeGo-based Sailfish operating system and will also be compatible with Google's Android applications.

The phone comes with a 4.5 inch display and 8 megapixel camera. It will also be 4G capable, depending on market. The Jolla will go on sale in the fourth quarter, the company said.

The company said it planned to focus on the Asian market, as a rapid growth in the region's middle class is fuelling demand for smartphones. It also plans to raise €30 million via convertible bonds in June.