Nokia said its phone prices in the first quarter were above its previous forecast and above market expectations, sending its stock to its highest in more than two years.
The world's largest mobile phone maker said that the average selling price (ASP) for its handsets in January-March was €103. In January, it said it expected ASPs in the period to be at best €99.
Nokia said its raised forecast reflected a smaller-than-expected proportion of cheap phones in the total sales mix during the quarter.
Shares in Nokia jumped 4.6 per cent to €17.75 this afternoon.
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At the end of last month, Nokia raised its global market growth forecast for this year to 15 per cent or more from the 795 million units sold by handset makers in 2005.