Nokia Oyj, the world's biggest maker of mobile phones, announced that its third quarter profits have increased 85 per cent.
Net income increased to EUR 1.56 billion (USD 2.23 billion), or 40 cents per share, from EUR 845 million, or 21 cents, a year earlier. The company beat earnings forecasts of EUR 1.31 billion.
Nokia reported that its sales rose 28 per cent to EUR 12.9 billion as it shipped 112 million phones in Q3.
"The profitability of their basic phones is at an amazing level,'' Jussi Hyoety, head of research at Glitnir Bank in Helsinki, told Bloomberg.
"Their distribution, scale and efficiency makes it extremely profitable for them.''
Nokia CEO Olli-Pekka Kallasvuo said that sales of the 550-euro N95 multimedia phone and handsets costing less than EUR 30 helped Nokia increase its market share to 39 per cent and boost margins.
The company forecasts its market share in Q4 will match that of the previous three months.