Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is planning to create a Lumia phablet, according to The Financial Times. Such a device would compete directly with the Galaxy Note, made by Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). If it’s successful, it would also be another weapon in the Finnish handset maker’s fight to get back into the mobile device game.

Nokia

The Financial Times’ source said the 5-inch phablet is the “most innovative” one, of several the company is said to be planning. The phablet would be a hybrid phone and tablet.

Other products in the pipeline for Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) are several more high-end smartphones, including the company’s first Lumia with Pureview technology. The device would have a 40 megapixel camera with a flash and is planned for launch in July. A lighter and higher-end Lumia 920 is also in the works, as well as a lower-cost handset, which expected out in the fall.

Today’s earnings report was fairly weak and pushed shares of Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) as much as 11 percent lower at the New York Stock Exchange today. However, the report did indicate that the company’s new Lumia line of handsets is selling quite well. The problem area for the company was its feature phone sales, which dropped more than Lumia sales increased.

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) is guiding for its Lumia shipments to increase 27 percent in the current quarter. However, it still has a long road ahead of it as it tries to catch up with competitors Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930).

Nonetheless, numerous studies have shown that demand for mobile devices with slightly larger screens is rising, especially in emerging markets like China, so a move into the phablet market would be a smart one for Nokia.

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