Nokia sold 7.4 million Lumia phones in the recent quarter, its best performance so far, beating last quarter's record of 5.6 million.
It also managed to reduce its overall losses significantly, with the firm reporting a €227 ($A324 million) million loss, from €1.2 billion this time last year.
However, overall sales shrunk to €5.7 billion from €7.5 billion in the same period last year. The company's handset sales stood at 54 million units, down from 74 million the same time last year – and worse than analysts had estimated.
IDC analyst Francisco Jeronimo pointed out that Nokia was unlikely to break the US any time soon, despite the launch of high-end Lumias to rival the iPhone and those smartphones running on Android, such as the Lumia 925.
"Nokia continues to show no signs of recovery in the US market," he said. "High investments, high expectations, low results."
Nokia's phone sales in the US fell from 600,000 to only half a million in the second quarter.
Nokia CEO Stephen Elop said that Lumia sales showed "increasing momentum" for Windows Phone and that the firm's "star" device, the Lumia 1020, would boost the firm's performance.
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