The codenamed 'Bandit' aims to rebuild market share in the US. Phablets are becoming increasingly desired by consumerswho are looking for a device with a bigger screen, but one that is not a tablet.
New rumours have suggested that Nokia is answering this demand and working on a six-inch phablet device codenamed the 'Bandit'.
The device is expected to be launched in time for Christmas, possibly on the AT&T network - and sources have said that it is being tested with the latest version of Windows Phone OS.
The full details are still unclear, however the phablet is said to include a 20-megapixel camera, and a processor based on a Qualcomm snapdragon chip which is currently used in more than 770 products.
The new product will be launched first in the US backing its aim to rebuild market share in the the country.