China was the only region Nokia increased its device volume from last year. Of the bright spots, its debut touch-screen handset, the XpressMusic 5800, shifted 3.7 million units in Q2, now a total 6.8 million since November launch.

After having launched the integrated Nokia Messaging approach, Nokia says 600,000 people have now activated an Ovi Mail account - the email system aimed at people in emerging markets.

Nokia confirmed 940 recently-announced job cuts from services (450), logistics (170) and device manufacturing (320). Headcount actually appears to have risen nearly five percent in the last year to 59,844, however, not including Nokia Siemens Networks.

Overall, Nokia lost a quarter of sales since last year, down to €9.9 billion (but that’s 6.9 percent better than Q1). And It shed 62.3 percent of its operating profit since last year, down to €775 million (but 50.9 percent better than Q1). Geopositioning acquisition Navteq’s gross profit rose to €126 million from €116 million the previous quarter, on higher in-car GPS demand, but Nokia Siemens Networks lost a quarter of its gross profit at €860 million

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From the analysts call (8am ET): Kallasvuo said mobile is undergoing the biggest change in its 20-year history thanks to the internet. He repeated Nokia’s vision of a location-aware mobile internet, this “requires Nokia develop new skillsets”. Symbian Foundation will later today announce a new application programme, he said. (Our post “Symbian Woos Developers By Not Launching Another App Store” is here.)

Staff are being placed on new performance-related assessments. Nokia is setting six-month targets to move from four million active users of Nokia services to 80 million by end of 2009, to 300 million by end of 2011.

“Growth in our services segment did meet our expectations”. Nokia shipped 500,000 N97s in June (“a solid start - indeed it was a very fast ramp-up”), but 5800 was the highest-value product, yielding €1.5 billion. Headcount has come down by 4,000 in the year to date. Services income was down from the previous quarter but up over the year.

On slow N97 growth: “We have to remember, the world is big, there are many markets, looking at only one market is not the way to do it ... There is more competition in the marketplace than the N95 did have.”