Nokia raises shipment forecasts

Shipment of 100 million devices brings supplier closer to goal of 40 per cent market share

Nokia has increased its phone shipments

Higher than expected shipments of mobile devices has helped raise Nokia’s profits by almost 30 per cent to €12.6bn (£8.5bn).

But the Finnish mobile phone company continues to struggle in other areas.

Nokia shipped more than 100 million devices in the second quarter - up 29 per cent - but sales at its business division Nokia Siemens Networks was lower than expected following unusually aggressive pricing by rivals.

The firm has raised its growth forecast for the handset market to more than 10 per cent, says chief executive Olli-Pekka Kallasvuo.

‘Nokia’s share of the global device market improved to an estimated 38 per cent while operating margins in our device businesses were at their highest level in three years,’ he said.

The results bring Nokia closer to its aim of 40 per cent market share, says Ovum director of wireless intelligence Martin Garner.

‘Nokia said that some of the gains came directly from Motorola’s weakness,’ he said.

‘But within the devices area, there was strength across the board.’

Nokia Mobile Phones, which makes mid and low-end devices, improved its operating profit by 28 per cent. Nokia Multimedia, which makes the N-Series phones, fared even better, with sales growth of 42 per cent.