Nokia has hit back at recent online claims that its "Comes with Music" service due to launch later this year could financially cripple the company.

Offering the unlimited 12-month period of music downloads to Nokia phone owners will make money for Nokia as well as record labels, the company has insisted.

"We expect to make money both from our traditional device sales, as well as from the 'Comes With Music' service", said Liz Schimel, head of Nokia's music business.

"I can assure you that we are looking out for everyone's interests in creating these new business models, including our own."

The reports, suggesting that Nokia would be pay market price per song downloaded after just 35 songs, have been dismissed: "Recent articles that I've seen have fundamentally misunderstood the concept behind the Comes with Music model", Schimel said.