Net income rose in the three months to March 31 rose 18% to 863m euros ($1.1bn) on revenue 16.5% higher at 7.39bn euros ($9.68bn).
The mobile phone market leader now forecasts that revenue for the second quarter will show an increase of at least 20% to 7.9 to 8.2bn euros ($10.3bn to $10.7bn).
After a wobble in 2004, Nokia is now back on track with growth in all its operating divisions. CEO Jorma Ollila said the company is the market-leader in China, now the world’s largest mobile phone market.
For a company that quotes its share of the market at 32%, flat compared with last year, its continued weakness in the US market remains a worry and volume sales fell. Ollila acknowledged that its US product portfolio is not where we would want it to be.
Standard handsets remain by far Nokia’s biggest business with sales up 11% at 4.5bn euros ($5.8bn). It is the high end that remains the biggest growth market. Multimedia sales were up 52% at 1.1bn euros ($1.4bn) as the number of 3G subscribers boomed while customized devices aimed at enterprises rose 67% to 307m euros (399m).
In networks, revenue increased by a modest 6% to 1.4bn euros ($1.8bn), though in common with the other network equipment companies, Nokia is increasing it focus on services to increase revenue stability for the future.
