Nokia Gets Better Price

Shares rise as the cell-phone giant sees higher ASPs.
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Nokia

(NOK) - Get Report

shares jumped 5% in early trading as the top cell-phone maker said average selling prices exceeded expectations in the first quarter ended last month.

The Finnish phone giant said increased sales of more expensive phones helped offset the high volume of lower-priced sets being sold in developing countries. Nokia says the average selling price per phone in the first quarter jumped 4% to $125 from $120 in the fourth quarter.

The pricing strength is a bit of a surprise given that the overall trend calls for average phone prices to fall as cheaper phones become a bigger part of the total sales volume.

The company did not change its financial outlook for the first quarter and is expected to report earnings on April 20.

The news comes as industry watchers have seen No. 2 rival

Motorola

(MOT)

enjoy a two-year winning streak with its popular ultrathin Razr phone. Nokia has also been

plagued by delays with new phone introductions this year, including it's heavily anticipated N-series phones.

Nokia shares rose $1 to $21.40 in premarket trading Tuesday.