Nokia's phone sales rose more than expected in the third quarter.
The Finnish firm said it sold 88.5 million phones in the quarter, 33 per cent more than a year ago, beating all expectations.
Over the same period, rivals Motorola and Sony Ericsson increased quarterly sales 39 and 43 per cent, respectively, from last year.
But Nokia, the world's top handset maker, had to cut prices sharply to win market share, hurting its profits and sending its shares down over 5 per cent.
The company reported earnings per share of €0.21, up from €0.20 a year ago, and compared with analysts' average expectations of €0.22 in a Reuters poll, but within the range of estimates.
Shares in Nokia, already weak after figures from mobile infrastructure rival Ericsson earlier in the day, were down 5 per cent at €15.15 on the news, while European technology shares were 1.4 per cent lower.
Nokia's July-September sales jumped to €10.1 billion from €8.4 billion in the same period a year earlier, beating analysts' average forecast.
Nokia said its market share rose to 36 per cent in the quarter, while the average selling price of its handsets fell to €93, below all estimates in the poll, which ranged from €94 to €104 and averaged at €100.