Nokia, the world's leading mobile phone maker, has posted an 85% rise in third quarter net profit to €1.56 billion even though mobile phone sales were up by only 3%.
Overall sales climbed by 28% to €12.9 billion, up from €10.1 billion a year earlier but slightly below analysts' forecasts of €13.1 billion.
The Finnish company said it remained the world's top selling mobile phone maker, with an estimated market share of 39%.
But handset sales inched up by only 3% to €6.1 billion during the quarter.
In terms of volume the group sold 111.7 million handsets, an increase of 26% from the same quarter a year ago and three million more than the market had expected.
The discrepancy between sales value and volume is attributed to Nokia's strong position in emerging markets, where phones in the low-cost range are more popular than high-cost phones.
Nokia's average selling price slumped from €93 a year ago to €82, well below analysts forecasts of €89.
The company's Mobile Phones division nonetheless saw its operating profit surge by 78% to €1.3 billion.
Meanwhile in the much-anticipated networks division, where Swedish rival and market leader Ericsson issued a profit warning earlier this week, Nokia Siemens Networks posted an operating loss of €120m.
