UPDATE 5-Nokia strengthens emerging mkt push, to cut jobs

* Unveils 7 phone models for emerging markets

* Follow-up to Nokia 1200, Nokia 1202 to sell for 25 euros

* Two models with e-mail support to sell for 40 euros

* To cut almost 600 jobs in marketing, research

* Shares up almost 4 percent
(Adds analyst comments, Oz deal, updates shares to close)

By Tarmo Virki

HELSINKI, Nov 4 (Reuters) - Nokia (NOK1V.HE) accelerated its
push in emerging countries on Tuesday as mature markets slow,
unveiling seven new phones and Internet services while slashing
almost 600 jobs in its marketing and research units.

Emerging markets are a stronghold for the world's top
cellphone maker, but it has lately seen increasing competition
from vendors such as China's ZTE (0763.HK) and Samsung
Electronics (005930.KS).

The new phones include the 1202, a follow-up to Nokia's
top-selling 1200 model that will sell for some 25 euros ($32.2),
two models with e-mail support priced at 40 euros, and a 75-euro
Nokia 7100, with smartphone-like features.

"This refresh to Nokia's entry-level portfolio will
reinforce its dominance in emerging markets," said analyst Geoff
Blaber at research firm CCS Insight.

While the 1202 is a direct rival to the most inexpensive
phones of ZTE and smaller Chinese manufacturers, analysts said
the other models will put further pressure on the low-end phones
from struggling Motorola (MOT.N) and Sony Ericsson (6758.T)
(ERICb.ST).

Shares in Nokia rose on the news and closed almost 4 percent
firmer at 13.05 euros.

Handset makers are increasingly looking for opportunities to
tap booming demand from emerging markets as slowing economies
have started to hurt sales in developed markets.

"We continue to be in a very strong position in emerging
markets," Alex Lambeek, head of Nokia's entry level phones, told
Reuters in an interview.

"I would say we are changing the game. It's not only
devices, it's also about services," he said.

ERODING PRICES

While welcoming the low-end launches, analysts said they
were still waiting for new higher-end models, which would
improve margins and help halt a steady slide in prices.

"This is maybe not what the market wants to see from Nokia
these days ... From a volume perspective it's good, but God
knows what the demand in those markets will be in the first
half," said analyst Thomas Langer at West LB.

"This will lead to further market-share wins in emerging
markets, but what's missing is really nice stuff in the high
end. In order to get operating profit margin above 20 percent
they need to do more in the high-end," he said.

Nokia phones' third-quarter average selling price fell to 72
euros from 74 euros in the second quarter. It has been in steady
decline in recent years as demand for lower-priced products in
emerging markets rises, competition toughens and technology
matures.

The company last December targeted an operating margin of
some 20 percent during the next one to two years for its Devices
& Services business. While Nokia remains more profitable than
its peers, the third quarter margin was 18.6 percent.
[ID:nLU133119]

To help offset falling phone prices, Nokia has started to
look for new revenue streams from Internet services -- like
media sharing, games and music offerings -- which could also
help it find a wider audience in emerging markets.

But in developed countries, the Finnish group is battling
more established players like Flickr or Apple (AAPL.O).

In addition to rolling out e-mail enabled phones costing 40
euros, Nokia said it will roll out its e-mail service for
cheaper phones running Symbian Series 40 software this year.

"Nokia is trying to build a firewall aimed at preventing
Blackberry from migrating into low-end business and emerging
markets," said analyst Tero Kuittinen from Global Crown
Capital.

Nokia said on Tuesday it had completed acquisition of
Canadian company Oz Communications, which will enable it further
to roll out e-mail and messaging services to cheaper phones.

JOB CUTS

Nokia said in a separate statement it aims to cut 450 jobs
in its markets unit, which was founded at the start of the year
when Nokia combined its three cellphone units into one.

"In the markets unit we are continuing the change of the
organisation which started from the beginning of 2008," said a
company spokeswoman.

Nokia said it would also cut 130 jobs, or 20 percent of the
staff, at its research centre, which has focused on the most
promising long-term research topics. Nokia employs some 58,500
people in its phones and services businesses.
($1 = 0.7764 Euro)
(Editing by Sharon Lindores, Victoria Bryan and Matthew Lewis)