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HELSINKI – Nokia Corp. reported meliorate than expected first-quarter profits weekday but its orbicular mart deal dropped to beneath 30 proportionality for the prototypal time in over a decennium as the world's crowning radiotelephone concern continuing to lose connector to rivals.

The Suomi company's net profit in January finished March lapse euro5 meg to euro344 meg ($499 million) from a assemblage earlier. Revenue grew 9 proportionality to euro10.40 billion.

The company's deal toll climbed several proportionality as markets had expected a greater start in profits and modify sales, but closed nearly unchanged at euro5.96 ($8.65) on the Helsinki Stock Exchange.

The Suomi consort has visaged formal rivalry in past years in the high-end sector, specially from Apple Inc.'s iPhone, Android-based handsets and Research in Motion's Blackberry.

Nokia oversubscribed 24 meg smartphones in the period, 13 proportionality more than in 2010, but its mart deal for the devices plunged to 24 proportionality from 39 proportionality a assemblage earlier, according to Strategy Analytics mart research.

The company's overall orbicular mart deal also lapse — to 29 percent, its minimal level since the New 1990s. A assemblage past its total mart deal was 33 proportionality and 31 proportionality in the preceding quarter.

Nokia oversubscribed 108.5 meg devices in the prototypal quarter, above the Strategy Analytics judge of 105 million, and the average commerce toll of its handsets continuing its growth to euro65, from euro62 a assemblage earlier, indicating it is commerce more top, expensive models.

"Volumes were meliorate than expected and pricing was stronger," said Neil Mawston, an analyst at Strategy Analytics . "But it's clear that rivalry is still tough."

Mawston said Nokia can wait "bumpy revenues and profits for the incoming pair of quarters," as its fresh declared fastening with Microsoft Corp. comes onstream.

CEO author Elop said Nokia has now subscribed a "definitive" deal with Microsoft Corp. to amend software for smartphones "and that product design and engineering impact was "well low way."

The partnership, prototypal declared in February, module attain Windows Phone software the main papers used in the Suomi company's smartphones

Elop did not feature when the Nokia Windows sound would be launched. But he said that "devices that take plus of the Windows sound papers module be transport in volumes in 2012, and there is pressure

"In recognition of the unique nature of Nokia's agreement with Microsoft and the contributions that Nokia is providing, Nokia module obtain payments rhythmic in the billions of dollars," Nokia said.

Elop did not feature when the Nokia Windows sound would be launched, but additional that "devices that take plus of the Windows sound papers module be transport in volumes in 2012."

Describing the prototypal lodge as "remarkable," he said the consort module face "a more challenging ordinal quarter," as it goes finished a restructuring punctuation with Microsoft.

Nokia said the wave and earthquake in Japan had disrupted the cater of whatever components linked to Asian suppliers and would impact its results in the ordinal quarter.

Facing unmerciful competition, Nokia has lost its position as the industry's innovative cheater and the company's stock dipped to a 13-year low of euro5.60 in March.

At the modify of terminal assemblage its Symbian papers was surpassed by Android as the world's No. 1 smartphone software, according to Canalys research firm.

On Thursday, Strategy Analytics said Apple had overtaken Nokia in the prototypal lodge to embellish the world's maximal phone vendor in revenue terms, commerce a achievement 18.6 meg iPhones.

Nokia, an Espoo-based consort nearby Helsinki, employs 132,500 people.

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Online:

Nokia: http://www.nokia.com

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