Nokia, the largest cellular phone manufacturer in the world, is developing a Linux-based mobile OS that will power its low-cost smartphones as it bids to sell a billion of such under-$100 device.

The Nokia OS project called "Meltemi" and led by executive vice president Mary McDowell, was revealed by the Wall Street Journal on Thursday.

An e-mailed statement from a Nokia spokesman described the plan as part of exciting projects of the Nokia Mobile Phones team "that will help connect the next billion consumers to the Internet," according to Computerworld.com.

The "next billion" Nokia low-end handsets will be made touch-capable and app-enabled through Meltemi, according to Thenextweb.com.

Market intelligence firm IDC sees the low-end smartphone market emerging as the largest smartphone market segment with its sale growing faster than the sale of high-end models in Western Europe.

Earlier reports referred to the company's Qt app as possible replacement for the Series 40 OS used on Nokia feature phones.
Nokia also adopted the Windows Phone OS for its smartphones but critics doubt if such device can match the low price of Android-run smartphones. A prototype of the Nokia Windows Phone handset codenamed Sea Ray, which resembles the Nokia N9, leaked to the press in June.

Nokia plans to launch the Sea Ray this month, possibly at the Nokia World in London.