Siemens has high hopes for its 3G handsets

The company says new models introduced in the past eight weeks have proved a major hit with consumers, pushing sales for the period to 11.8 million units.

Siemens' mobile phone business ranks in the world's top four, but it has been struggling with price cuts and competition from Asian manufacturers.

It has also acknowledged in the past that it has lacked attractive new handsets in comparison to rivals Motorola, Samsung and Nokia.

Share boost

It has been forced to cut thousands of jobs in the past 12 months in the face of weak demand.

But Siemens Mobile chief Rudi Lamprecht said sales of new handsets had boosted the company's market share to "much more than 9%", adding he was hopeful of a bumper Christmas period.

He was also upbeat about the prospects of a turnaround in the market for mobile phone infrastructure, which has shrunk by up to 40% in the past two years.

Siemens shares were trading 3.2% higher at 55.88 euros at 1507 GMT.

3G hopes

Mr Lamprecht was speaking at the launch of Siemens's latest third-generation (3G) mobile telephone.

Smaller that its rivals, the handset also carries two integrated zoom cameras and a high resolution display.

Although 3G has been plagued by slowing investment by major industry players, he told Reuters news agency: "As I look at it from today's point of view, I see a certain acceleration in the 3G development."

"If I take the 30,000-feet view of it, I really see certain acceleration and people are getting more excited about (3G) possibilities."

Last month, a report by analysts Gartner Dataquest gave Siemens a 7% share of the global handset market in the second quarter, lagging way behind Nokia's 35.9%.

Growth prospects

Mr Lamprecht said that the network infrastructure market had declined by 20% last year and was set to repeat the drop again in 2003.

But he said Siemens' own network sales figures were well ahead of the overall market, for which he cautiously predicted a recovery in late 2004.

"Looking forward, I feel that we've kind of reached the bottom," he said.

"Do we see huge growth next year? I would not count on it. But I would not count on another decline of 20%.

"Maybe there is even some growth in the second half of next year."