Nokia beats forecasts, sees shares soar

Nokia has announced that its Q4 net profit surged 44 percent to $2.6 billion on net sales of $22.9 billion.

The Finnish company retains its title as the world's biggest mobile phone manufacturer and has now shipped more than 133 million handsets in the last three months of 2007.

This performance helped it capture more than 40 percent of the global market share in handsets at the expense of second place Motorola who saw its shares plunge 23 percent after it revealed a disastrous performance.

Motorola saw its net profit fall by 84 percent over the same period and mobile phone sales go down by 38 percent.

Nokia experienced a remarkable recovery in its Networks and Enterprise Solutions segments which both saw their net sales double over one year period.

Intriguingly, the company's operating margin on mobile phones has increased to 25 percent which is an indication that Nokia might be enjoying above average Average Selling Prices.

Nokia has successfully developed a two-prong approach to the global market with the launch of ultra-cheap mobile phones like

The Nokia 120 or the Nokia 1100 - which remains the world's most popular cell phone with more than 200 million of those sold since 2003 - are destined to third world and emerging countries

Internet capable, smart phones like the N95 on the other hand, target for more mature markets like Europe and America.