Nokia's phone sales higher than expected

Nokia Corp says fourth-quarter mobile phone sales exceeded its own expectations, sparking a sharp rise in the company's share price.

The struggling Finnish phone manufacturer says it sold a total 86.3 million devices in the last three months of 2012, including 4.4 million Lumia smartphones , while revenues amounted to some 3.9 billion euros.

But the company, which has seen its market share fall precipitously in recent years, adds that seasonality and competition will have a negative impact on the handset division's first-quarter profitability in comparison to the last three months of 2012.

Nokia's statement Thursday sent its share price soaring 16 per cent to 3.50 euros on the Helsinki Stock Exchange.