Nokia reported weaker-than-expected third-quarter sales and profits, but hold positive view on cell market going forward.

The Finnish group reported third-quarter earnings per share of 0.29 euros, down from 0.40 euros a year ago, missing the average forecast of 0.31 euros in a Reuters poll of 37 analysts.

Handset makers have already started to feel the pinch from slowing economies, with sales falling in Western Europe, but booming demand from emerging markets has so far balanced that out.

Nokia said it expected industry mobile volumes to rise around 10.5 percent to 1.26 billion phones in 2008.

"With our scale, brand, improving product portfolio and low cost structure, we believe Nokia is well positioned for the current times," Nokia Chief Executive Olli-Pekka Kallasvuo said in a statement.