12:00 AM New York - The world’s largest mobile phone maker Nokia reported net profit in the first quarter ended March 31st rose 25% to 1.2 billion euros from 979 million euros in the same period a year ago

Quarterly Earnings Review

Nokia reported sales in the quarter ended March 31st rose 28% from 9.85 billion euros in the same quarter a year ago to 12.6 billion euros.

For the quarter, net profit advanced 25% from 979 million euros in the first quarter 2007 to 1.2 billion euros in the first quarter 2008. Earnings per share increased 28% to 0.32 euros per share in the first quarter 2008 from 0.25 euros per share a year earlier.

Operating profit in the quarter under review gained 20% from 1.2 billion euros in the comparable period a year ago to 1.5 billion euros.

Segment review

Devices & services

Total mobile device volumes in the first quarter of 2008 of the Devices & Services unit- an integrated segment that includes Mobile Phone, Multimedia and Enterprise Inns- rose 27% on the year to 115.5 million units, while the overall industry volume for the same period gained 17% on the year to 295 million units.

Nokia’s converged device volumes rose to 14.6 million units in the period under review from 11.8 million units in the first quarter 2007. Similarly the converged device industry volumes advanced to 3.33 million from 23.5 million in the comparable period a year ago.

During the first quarter 2008, shipments of Nokia Nseries was close to 10 million units, while close to 2 million Nokia Eseries devices were also exported.

It is estimated that Nokia’s market share rose from 36% in the first quarter of 2007 to 39% in the first quarter of 2008 driven by inroads that were made in emerging markets such as Latin America, Asia-Pacific, China and Europe.

Due to the slowdown in America, the company’s market share slackened in North America, while market share in the Middle East & Africa was somewhat flat.

However there was strong sequential market share gains in Latin America.

The mobile company’s market share in China was at the same level sequentially.

The average selling price (ASP) in the first quarter 2008 was 79 euros from 89 euros for the same period a year earlier on a weaker U.S. dollar and a higher proportion of lower priced products.

First quarter 2008 Devices & Services net sales grew 13% to 9.3 billion euros from 8.2 billion euros in the same comparative period last year.

In the quarter strong overall volume growth was partially offset by a significant ASP decrease.

There was strong growth in net sales for the division, particularly in Latin America, followed by Asia-Pacific, Middle East & Africa, China and Europe. But sales were considerably lower in North America.

Devices & Services gross profit grew 33% to 3.6 billion euros in 2008 compared with 2.7 billion euros in the first quarter 2007.

Devices & Services operating profit grew 50% to 1.9 billion euros compared to 1.3 billion euros in the first quarter 2007.

Operating profit included a 81 million euros facilities impairment and other charges related to the closure of the Bochum site in Germany.