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Nokia: Sales and profit are above expectations

Nokia today presented a surprisingly positive result. In the first quarter, the company increased its sales by a whopping 28 percent to 9.5 billion euros and earnings per share from 19 to 25 cents. “If you have an absolute top sellers such as the Nokia N70 in the program, increase revenue and profits higher than expected,” says Gartner analyst Martin Gutberlet.

The company benefited mainly from the strong overall demand for mobile phones. 75.1 million mobile phones were on the counters, experts had expected at the beginning of the fiscal year with only 70 million. “For us this was no surprise, because our internal estimate of 75 million units sold was hit with pinpoint accuracy,” says Gutberlet.

Nonetheless, Gutberlet believes that it is not the average cell phone price (ASP) of 103 euros in this quarter can be maintained. “Due to the volume, which is expected in Asia, the low-cost devices to be something ASP press,” said Gartner analyst.

Nokia’s market share could increase by one percentage point to 35 percent and thus the true distance to rival Motorola. The number two in the mobile market had released their quarterly numbers yesterday, Wednesday, – and disappointed analysts. Due to the ailing network division had recorded a profit decline Motorola. The mobile phone business, however, was significantly better: here was a top seller, the Razr model, the strong sales boost.

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