They need to find new applications and features that will continue to sell their more expensive phones in Western Europe and North America.

Growth will slow down going into the second and third quarter.

All the regions recorded growth this quarter, apart from Japan that saw a small decline in demand compared to the second quarter in 2004.

Year on year sales grew in all regions as replacement sales in mature markets such as Western Europe and North America continued to drive growth while users in emerging markets joined mobile networks and acquired their first mobile device.

Nokia has proven that there is a sizeable market of consumers in Europe, North America and Japan who are looking to replace their phones with a more powerful device that can do instant messaging, photography, music.

It's the mixture of products with more basic phones being sold in emerging markets and that's gonna shift your ASP.