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Last Updated: Thursday, 20 October 2005, 11:58 GMT 12:58 UK
Demand boost lifts Nokia profits
Nokia phone
Nokia is facing fierce price competition in emerging markets
Strong demand for mobile phones has lifted profits at Nokia, the world's biggest mobile manufacturer.

Nokia reported profits in the third quarter of $1.05bn (600m), up 29% on the same period last year.

Sales rose to $10bn in the quarter, up by 18% compared with one year ago, as the company sold 66.6 million mobiles, giving it a 33% market share.

However, Nokia shares were marked down on the Helsinki exchange by 2.6% as sales figures were below expectations.

'Growing strength'

"Profitability was driven by an excellent performance from our device businesses," Nokia chief executive Jorma Ollila said.

"This was backed by growing strength in our product portfolio and our ability to manage costs and execute well."

Nokia said it was raising its forecast for the overall size of the mobile phone market to 780 million units for the year, an increase of 20 million.

However, analysts worried that much of current sales growth was driven by expansion into developing country markets, where prices and margins are lower.




SEE ALSO:
Nokia's boss Ollila to step down
01 Aug 05 |  Business
Nokia profit warning hits shares
21 Jul 05 |  Business
Mobile giants boost phone ranges
15 Jun 05 |  Business
Nokia warned by market regulators
26 May 05 |  Business
Profits up at Nokia and Motorola
21 Apr 05 |  Business


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