Nokia - surging profits

Nokia, the world’s biggest mobile phone manufacturer, shrugged off tough market conditions to unveil forecast-beating results.
Net profit at the Finnish handset group rose 19 per cent in the fourth quarter to €1.27 billion (£835 million) or €0.32 a share.
Sales were up 13 per cent on the same time last year to €11.7 billion.
Analysts had expected earnings of 28 cents a share on sales of €11.52 billion.
Though the average selling price of the phones fell, analysts dismissed this to send the group’s shares up 7 per cent to €16.57 in Helsinki after the announcement.
Like its peers Nokia, which is far ahead of its nearest rival, Motorola, with more than 35 per cent of the mobile market, is facing fierce pricing pressure.
Mobile operators, particularly in Western markets where mobile penetration is more than 100 per cent, are demanding ever cheaper handsets.
Tie-ups between mobile operators, giving them increased buying power, have further increased the pressure on the handset vendors.
In an attempt to offset these pressures, companies such as Nokia are increasingly turning to emerging markets.
However, though the sales potential is huge, the average selling price of phones is far lower than in more mature markets.
Last week Motorola announced plans to lay off 3,500 workers after seeing its profits savaged.
Some analysts had feared that Nokia might also have been hit by the tough conditions.
Ben Wood, of CCS Insight, the telecoms consultancy, said: "To grow margins and volumes like this in such a tough market is very impressive."
Nokia shipped 105.5 million phones in the quarter, compared with 83.7 million units a year earlier.
In an effort to grab more market share the Finnish group is working on a reinvigorated product range.
Analysts expect the group to unveil a flurry of sleeker, thinner devices at 3GSM, the industry’s annual get-together, next month.