Nokia says Q3 profit could beat expectation

Nokia has predicted that it could exceed previous profit targets for the third quarter of 2003.

The world’s leading mobile phone maker has said that sales of mobile phones continue to perform well even though the average price for handsets continued to fall.

Shares in the Finish-based company fell to €14.35 in mid-afternoon after opening at €15.35 in the morning in Helsinki.

This was after Chief financial officer Olli-Pekka Kallasvuo said the third quarter operating margin was unlikely to equal the exceptional 23% level seen in the second quarter.

Analysts believe that the market now fears the days of the group's extraordinarily high margins might be nearing an end.

Nokia will report its third quarter figures on October 16.