Nokia's shares bounce up as they predict greater handset sales this year

Nokia's shares bounced up nearly 5% today as they predicted that 2006 would deliver even better handset sales globally than previously estimated. They had expected 10% growth from last years total of just under 800M. Now they expect 15% year on year growth.

Analysts said the strong growth was coming from emerging markets. To benefit from it, Nokia also announced three new low-priced phone models in China, and said it expects to sell them all in "tens of millions."

But they will not be the only ones to chase such markets and low end devices, for this year Sony Ericsson and Samsung will join the mass market battle. Nokia though feels confident as they apparently enjoy a 20% cost advantage over rivals in cheaper phones.

And you need it at the volume end - cos the margins are miniature. But 2006 looks set to be another stellar year for all the leading handset makers.