Nokia reports strong Q2 profits, sales

Nokia reinforced its position as the world's top mobile phone maker in a strong second quarter, reporting an increase in its market share amid surging growth in emerging markets and earnings that more than doubled, an Associated Press report said.

The Associated Press report said results beat market expectations, sending Nokia shares soaring 8%.

The report said net profit for the April-June period rose to 2.82 billion euros ($3.85 billion) from 1.14 billion euros ($1.56 billion) in 2006.

Sales grew 28% to 12.6 billion euros ($17.2 billion) from 9.8 billion euros ($13.4 billion), the report said.

Nokia sold 100 million mobile devices in the period, an increase of 29% on 2006, while the overall industry growth was less than half that, at 14%, with 262 million mobile devices sold globally, Nokia said.

But the group again cautioned about the performance of its troubled network operations, describing market conditions as challenging due to heavy competition.

The report said the greatest growth in Nokia's handset sales of 37% was in the Middle East and Africa, it said. But at 36% growth, sales were also strong in the Asia-Pacific region and China.

Nokia said it raised its global market share to 38% from 34% in last year's second quarter and from 36% in the first quarter this year, and predicted a further increase in the third quarter, the report said.