Nokia has released its best annual results in five years. Handset sales rose 16 per cent to 265 million units, and the firm is the market leader in all geographical regions.
The mobile giant had a global market share of 34 per cent at the end of 2005, and expects the market to grow 10 per cent in 2006.
The bulk of the growth came in high-end multimedia phones, and Nokia reported a five per cent drop in basic mobile phone profits.
Nokia's network business profitability also declined slightly in the face of increased competition and significant annual investment.
"The market is exciting if you look at the growth numbers," said Tero Ojanperä, chief strategy officer at Nokia.
"Over the next three to five years volume growth will continue and, although prices are falling, there is good growth to be had in value terms."
The average price of mobile phones fell below €100 for the first time as a greater percentage of phones were sold to developing nations.
"A low average price is not a bad thing as such. What is important is profitability," said Arja Suominen, vice president for communications at Nokia. "We want to take mobility to new places, new markets and new people."
Suominen highlighted China as a case in point. While basic, low margin phones are popular in that country, people are upgrading as soon as possible, particularly to handsets with colour screens.
The number of mobile subscriptions passed the two billion mark globally and Nokia is estimating that this will rise to three billion by 2008.
The firm has also predicted the precise day on which fixed line voice traffic will be overtaken globally by mobiles: 17 October 2007.
Some parts of Atacama have not received rainfall for 500 years - but a sudden deluge of water upset the Desert's delicate biological balance
Spitzer Space Telescope could not spot Oumuamua, suggesting that it is actually pretty small
Greenland crater one of the 25 largest impact craters on Earth
This long-sought progenitor star was identified in an image captured by Hubble in 2007