Nokia said Tuesday brisk handset demand should produce a higher-than-expected third-quarter profit, but tough price pressures and a weak dollar would offset any revenue growth.

Although sales is robust fueled by developing markets such as India and China, shares closed down 3 percents as investors found that average phone-selling prices remain under pressure from tough competition and this year's weakness in the dollar.

However, Nokia said pro-forma earnings for the third quarter would be at the top end of, or slightly above, its previously announced range of 0.15 to 0.17 per share, down from 0.18 a year ago.

Although sales are under pressure, the firm has the highest profit margins in the crowded market due to economies of scale. Nokia sells more than twice as many phones as its nearest competitor, Motorola, and is approaching a global market share of 40 percent.

By: DocMemory
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