Helsinki - Finnish-based Nokia, the world's biggest mobile phone maker, said Thursday it increased its share of the global handset market but its net profit fell 61 per cent in the second- quarter of 2008.

Net sales increased 4 per cent to 13.15 billion euros (20.9 billion dollars), while net profit was 1.1 billion euros, down 61 per cent on the corresponding business period 2007.

The group's operating profit fell 38 per cent to 1.47 billion euros compared to second-quarter 2007, including costs for the closure of its plant in Bochum, Germany.

The Nokia share price gained some 6 per cent shortly after the report was released.

Nokia estimated that it had a 40 per cent share of the global handset in the second quarter compared to 39 per cent in the first quarter 2008.

Chief Executive Olli-Pekka Kallasvuo said in a statement that the quarter showed "strong underlying profitability" and said he was "optimistic" for the rest of the year for sales of Nokia devices.

Kallasvuo added that Nokia believed that "devices linked with services" will drive "the next wave of growth."

In its outlook for 2008, Nokia said it had slightly revised its earlier estimate about the global handset market saying it was expected to grow 10 per cent or more.

Nokia's second quarter sales of mobile phones increased by 21 per cent year-on-year to 122 million units.

The group said it sold 27.1 million units in Europe, 36.4 million units in Asia-Pacific, 17.6 million units in China and 21.1 million units in the Middle East and Africa.

Sales increased some 9 per cent in North America.

Other trends included lower average selling prices for its handsets.

Nokia said the average selling price of its mobile devices in the second quarter of 2008 was 74 euros, down from 79 euros in the first quarter. In second-quarter 2007 it was
90 euros.

The 50-50 joint venture Nokia Siemens Networks - launched last year between Nokia and Germany's Siemens - posted an operating loss of 47 million euros for the second-quarter, while its net sales increased 18 per cent to 4.1 billion euros year-on-year. (dpa)