John Paczkowski, AllThingsD:

“We believe that shipments of Nokia’s new Windows Phone 7 products have been lower than we had previously anticipated,” Faucette wrote in a note to clients. “We had expected that the company could ship as many as 2 million units into the six targeted markets for the holidays; however, we now believe that those shipments are likely to be less than 1 million for the quarter.”

It’s still early yet in Nokia’s ramp-up of Windows Phone 7 products, so it’s probably too soon to declare this a failure. But it does suggest that Nokia and Microsoft have an uphill battle against iOS and Android.