Earnings: Nokia Bucks Expectations; Market Share Increases To 40 Percent

Nokia (NYSE: NOK) reported second quarter earnings today, which saw its net income fall 61 percent to 1.1 billion euros ($1.74 billion), from 2.83 billion euros ($4.49 billion), compared to a year ago. The Finnish handset maker blamed among other items the 259 million euro ($411 billion) charges related to its Bochum, Germany-plant closure. Still, according to analysts surveyed by Bloomberg, this beat their expectations of a net income of 1.26 billion euros ($2 billion). Moreover, Nokia reported second-quarter sales of 13.2 billion euros ($21 billion), beating analyst predictions of 12.8 billion euros ($20.2 billion) .

Mobile device volumes rose 21 percent year on year, or 6 percent sequentially, to 122 million units, which Nokia says gives it a total global market share of 40 percent. Average selling price (ASP) fell to 74 euros ($117) from 79 euros ($125) in the first quarter. Nokia blamed some of the fall on the declining dollar, noting that 40 percent of the ASP decline was caused on exchange rates moving against them.

Nokia chief Olli-Pekka Kallasvuo, meanwhile, said that the company

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