Nokia Profits Soar 85% on Popular New Models

Market share grows to give company biggest lead ever against competitors
By Kevin Spak,  Newser Staff
Posted Oct 18, 2007 7:19 AM CDT
The forecourt of the Nokia Theatre is seen as workers test lighting and LCD display systems as workers put finishing touches on the complex in Los Angeles after sunset Tuesday, Oct. 16, 2007. It's part...   (Associated Press)
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(Newser) – The world's biggest maker of mobile phones announced an 85% increase in third-quarter profits today, topping analysts' estimates on the strength of popular new models. Nokia Oyj increased its already dominant market share to 39%, from 36% last year, giving the Finnish company more of the pie than its three biggest competitors—Motorola, Samsung and Sony Ericsson—combined.

But the big surprise for analysts wasn’t the market share, Bloomberg says, but the margins, as Nokia revenue climbed despite lowering the average price of their phones 8.9%. “The profitability of their basic phones is at an amazing level,” said one analyst. “They can make low-end phones in a profitable way.”