Nokia earnings fall nearly 7% in Q1

Nokia's first quarter earnings dropped nearly 7% as high sales of low-end models in emerging markets pushed down its average selling price, an Associated Press report said.

The Associated Press report said the firm's net profit came to 979 million euros ($1.3 billion), down from 1.05 billion euros ($1.4 billion) in the first three months of 2006, adding that its share of the global mobile phone market was up slightly at 36%.

Overall sales grew to 9.9 billion euros ($13.4 billion) from 9.5 billion euros ($12.9 billion) in the year-ago period, Nokia said.

The Associated Press report said average selling price of Nokia's handsets was 89 euros ($120), unchanged from the previous quarter, but down 14% from 103 euros ($140) in the first quarter of 2006 due to a higher proportion of low-end handsets sold in emerging markets, including India and China.

Net sales of mobile phones fell 5% to 5.6 billion euros ($7.6 billion) despite a 21% increase in volume sales, Nokia said.