Nokia shares soar on handset price adjustment

Nokia's announcement increasing its estimate for the average selling price of its handsets sent shares soaring to a 52-week high, an Associated Press report said.

"We expect the improving product portfolio could have a positive impact on margins throughout the course of 2006," Piper Jaffray analyst T. Michael Walkley was quoted by Associated Press as saying.

Nokia had earlier said that the average selling price of its handsets, a widely watched industry figure, would be higher than previously expected, according to the report.

The report said Nokia's first-quarter average selling price was about $125, according to preliminary figures, compared with its prior estimate of about $120.

The company said the proportion of its cheaper products was lower than expected, the report said.

Nokia's American depositary shares rose $0.91, or 4.5%, to $21.31 in midday trading on the New York Stock Exchange. Earlier in the session, the stock was trading $21.63, above its prior 52-week high of $21.36, the report further said.