Nokia shrugged off fears that a push into emerging economies would dent its margins by announcing a doubling of second-quarter profits and taking a 38 per cent share of the global phone market.

Shares in the world’s biggest maker of mobile handsets hit their highest for more than five years as it revealed that it had sold 100.8 million phones in the quarter to June 30 – more than its three closest rivals combined.

Net profits increased to €2.82 billion (£1.19 billion), from €1.14 billion a year ago, on revenues up by 28.3 per cent to €12.58 billion. Although analysts had expected sales to increase, they had forecast lower profits as a result of the group’s push into emerging markets.

Nokia’s strong performance was helped in part by the problems of Motorola, its US rival. This month Motorola reported a second-quarter loss and endured a huge slide in sales.

Olli-Pekka Kallasvuo, Nokia’s chief executive, admitted that competition had not been as fierce as normal and said a long-standing target of 40 per cent market share was attainable.

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