Nokia Reports 85% Jump in Third-Quarter Profits

5:50 am on October 19, 2007 | Category: Business, Cell Phones, Mobile Devices

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The world’s biggest cell phone manufacturer, Nokia, announced an 85% leap in its third-quarter profits yesterday, beating the expectations of most market analysts.

The Finnish handset maker generated profits of €1.56 billion ($2.23 billion), or $0.40/share, in its summer quarter, up from €845 million in the same period last year. Total revenue swelled 28% to €12.9 billion.

The bulk of Nokia’s gains are taking place in developing markets such as India and China, where hundreds of thousands of mobile phones are purchased every day. This has given the company a larger worldwide market share than its three biggest competitors – Samsung, Motorola, and Sony Ericsson – combined.

“The profitability of their basic phones is at an amazing level,” commented research analyst, Jussi Hyoety, of Glitnir Bank in Helsinki.

“We are taking market share wherever there’s growth,” explained Nokia’s Chief Financial Officer, Rick Simonson, in an interview.

The company’s shares climbed 2.5% yesterday to close at €26.25 in Helsinki. The stock has surged more than 70% so far this year.

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    Edited by Jeremy Maddock