Helsinki - Finnish-based Nokia, the world's biggest mobile phone maker, said Thursday it increased its sales and net profit for first-quarter 2008 although its share of the global handset market slipped slightly.

Net sales increased 28 per cent to 12.6 billion euros (19.9 billion dollars), the group said while net profit was 1.2 billion euros, up 25 per cent on the corresponding business period 2007.

Nokia estimated that it had a 39 per cent share of the global handset in the first quarter while it was on 40 per cent in fourth- quarter 2007. The group estimated it would grow in second quarter 2008.

Chief Executive Olli-Pekka Kallasvuo said the quarter showed "strong profitability," adding that Nokia expected emerging markets to account for the "greatest demand."

In its outlook for the second quarter, Nokia repeated its earlier estimate that the global handset market in 2008 was expected to grow 10 per cent.

Nokia's first quarter sales of mobile phones increased by 27 per cent year-on-year to 115.5 million units.

Other trends included lower average selling prices attributed mainly to the "negative effects of the recently weakened US dollar," Nokia said.

The group said it sold 25.9 million units in Europe, 34.1 million units in Asia-Pacific, 21 million units in China and 20.2 million units in the Middle East and Africa.

Sales dropped however in North America.

Nokia said the average selling price of its mobile devices in the first quarter of 2008 was 79 euros, down from 83 euros in the fourth quarter 2007 and 89 euros in first quarter
2007.

The 50-50 joint venture Nokia Siemens Networks - launched a year ago between Nokia and Germany's Siemens - posted an operating loss of 74 million euros for the first-quarter.

The Nokia share price dropped some 10 per cent early afternoon after the report was released.