Nokia, the world's largest mobile phone manufacturer, missed market expectations this morning as it reported a 30% fall in profits.
The Finnish technology giant said third quarter profits fell by nearly one third to €1.09bn (£850m) from €1.56bn, with sales falling 5% to €12bn.
The results were weaker than expected but analysts reacted positively to the group's comments on global demand for handsets this year. Nokia said it expected phone volumes to rise by 10.5% to 1.26bn phones in 2008, as sales in emerging markets offset falling demand in western Europe.
"With our scale, brand, improving product portfolio and low-cost structure, we believe Nokia is well positioned for the current times," said the company's chief executive Olli-Pekka Kallasvuo.
Analysts expressed relief that Nokia had not delivered a gloomy outlook for next year, while noting that the telecommunications group had not given much guidance on market conditions for 2009.
Thomas Langer, an analyst at West LB, said: "The report will be taken with a bit of relief because there was not much mention of the economic crisis, but people would want to know how the company is seeing the competitive environment and the outlook for 2009. The Q3 results didn't fall off a cliff, but have put investors in limbo."
Earlier this month, Nokia fought back against Apple and Google with its first touchscreen phone, the 5800 XpressMusic – a response to Apple's iPhone and the new G1 device which uses Google's Android platform. Nokia executives have described the 5800 ExpressMusic as the first in a portfolio of products targeting the music and entertainment market.