Nokia predicted a more profitable future for its NSN networks equipment business yesterday, raising hopes for growth in what will be the Finnish firm's main business after its former flagship phones division is sold to Microsoft for $5.2 billion in the new year.

The third-quarter results showed growth in Lumia smartphone sales, although analysts said Microsoft will still face a tough time in pushing its way into the competitive consumer devices market with the Nokia deal, which is due to close some time in the first quarter. Sales of Lumia smartphones rose 19 per cent quarter-on-quarter to 8.8 million units, thanks to the launch of more models and strong demand. The unit’s core operating profit fell 33 per cent in the third quarter from a year ago to €218 million on sales down 24 per cent at €5.2 billion. – (Reuters)