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Nokia to cut staff after strong Q3

Nokia, the world’s biggest maker of mobile phones, reported a third-quarter profit that beat analysts’ estimates and said it would cut 1,800 jobs globally, boosting shares.

In the first results since the Finnish company named Stephen Elop chief executive officer, Nokia reported net income of €529m from a loss of €559m a year earlier. Sales rose to €10.3bn from €9.81bn.

Analysts predicted profit of €182.5m on sales of €9.99bn, according to the average estimate in a Bloomberg survey.

Nokia rose as much as 7.8pc to €8.32 at 1:11pm in Helsinki. It had plummeted from €28.60 in November 2007 to €6.61 in June of this year.

Nokia has been struggling to win back share in the high-end smartphone market, which has shrunk in the past three years as consumers moved to Apple’s iPhones and handsets using Google’s Android platform.

The lack of hit touchscreen devices and delays in redeveloping its Symbian operating software pull Nokia’s margins into single digits and dragged the share price below 10 euros for the past six months.

Nokia today said it cut its volume market share forecast for 2010, saying its percentage of the total number of phones sold this year will be “slightly down” this year compared to 2009.

Apple this week reported a 70pc gain in profit to $4.31bn for the quarter, with iPhone shipments almost doubling to 14.1 million and surpassing the 12.1 million BlackBerrys Research In Motion shipped in its most recent quarter.