Nokia sales up 28 percent, but analysts are disappointed

Nokia Thursday reported net income of €1.22 billion, missing analysts' expectations of €1.39 billion for the first quarter. The Finnish phone giant also had a bleaker than expected outlook.

Nokia also reported net sales of €12.7 billion, up 28 percent year-on-year.

Nokia said it expects the mobile device market to decline in value in euro terms, compared to 2007. It blamed the weak dollar, the economic slowdown in the U.S., and a possible slowdown in Europe.

But it also had some good things to say.

"Nokia had strong profitability in the first quarter, with both operating profit and EPS up significantly year on year," Nokia CEO Olli-Pekka Kallasvuo said in a statement.

Nokia sold 115.5 million phones in the quarter, a number in line with what Gartner analyst Carolina Milanesi expected.

The average sales price per phone for Nokia was €79, down from €83 in the previous quarter.

"As the growth shits to the emerging markets that is to be expected," said Milanesi. The weak dollar also played its part, but was secondary, she added.