Nokia, the world's largest mobile phone maker, forecast handset market volumes would grow around 10 per cent next year, more than analysts' 8.6 per cent consensus.
Nokia also said today its market share would be unchanged in 2010.
"Going into 2010, the overall mobile devices market is stabilising and it is growing more in the areas where Nokia has competitive advantages," Nokia's new finance director Timo Ihamuotila said in a statement.
Nokia forecast its handset unit's operating profit margin to be 12-14 per cent next year, in line with that reached earlier this year, but well below levels above 20 per cent seen a few years ago.
Nokia's shares were down 1.0 per cent at €8.82 at 1200 GMT, compared with a 0.6 per cent weaker Dow Jones Stoxx European Technology Index
Nokia's closest rival, Samsung Electronics, gave an upbeat forecast for 2009 mobile phone sales earlier this week due to sharp growth in touchscreen models.
Nokia and the rest of the cellphone industry have suffered as consumers cut spending on new gadgets, with the more expensive end of the market seeing increasingly stiff competition.