Nokia slashed up to ten per cent off some if its media and music handsets in July, in a bid to help beat the slowdown in phone sales.

The 5310 and 5610 music phones were among the most heavily discounted, as well as the 8GB N81, which has been a solid performer for the Finns.

This did cause Nokia shares to tumble slightly, though the company still managed to deliver a powerful message to its rivals.

Running away

"This is basically a way to run away from competition. You're putting a lot of pressure on your less competitive peers," said David Hallden, analyst at Cheuvreux on Reuters.

Nokia's move is nicely juxtaposed with its commitment to emerging markets like India, China and parts of Africa.

These areas are bucking to worldwide slowdown in handset growth, and Nokia has released a slew of low-cost mobile phones to appeal to this demographic.

In comparison, rivals Sony Ericsson and Motorola have been slow off the mark, allowing Nokia to once again steal a march in a key growth area and maintain it's 40 per cent dominance in the worldwide markets.