1:30PM New York, 7:30PM Frankfurt – Nokia trades higher after better than expected earnings report.

Nokia (NOK: chart) reported fourth quarter sales increased 34% to 15.72 billion euros and 5% rise in sales in mobile phone division to 7.4 billion euros. Mobile handset device unit sales increased 48%. Nokia estimated device market share increase to 40% on increasing operating margin.

Nokia reported fourth quarter earnings per share of 47 euro cents, a rise of 57% from 206 on 15.7 billion euro an increase of 34%.

Nokia operating margin in the quarter increased to 15.9%, up sequentially from 14.6% in Q3 2007, excluding special item and reported operating cash flow of 2.7 billion euros.

Nokia device volumes in the quarter increased to133.5 million units, up 20% sequentially and up 27% year on year on estimated industry device volumes of 336 million units, up 17% sequentially and up 16% year on year.

Nokia estimated device market share of 40%, up from 39% in Q3 2007 and up from 36% in Q4 2006. Nokia said that the average selling price increased to 83 euros, up from 82 euros in third quarter 2007.