Nevertheless, Dixons warned that profits would be down sharply on previous year, with consumers opting to keep their old handsets as opposed to upgrading to more expensive models.
The group saw a boost in November with record Black Friday trading but over the whole Christmas period the picture was affected by what Mr James called a "more cautious consumer environment".
Large screen TVs, gaming consoles and SIM-free phones were behind demand for shares in Dixons Carphone (DC.) on Monday.
Dixons Carphone issued its update a day earlier than planned after CEO Seb James said on Friday he would step down in April to join retail chemist Boots.
Moreover, group like-for-like sales also surpassed expectations, posting a 6 percent rise as a result of a strong performance in Greece and Scandinavia. Furthermore, the announcement replacement CEO Alex Baldock - current CEO of Very.co.uk and Littlewoods.com parent Shop Direct - just days after James' resignation will also be seen as a positive by shareholders (was the incumbent nudged towards the door?), confident that he can deliver a similar turnaround for Dixons to steady the ship during an overhaul in consumer spending patterns away from shops and towards online.
The group said the gross margins in the United Kingdom mobile business continued to be challenged by current market conditions.
"Looking forward we continue to keep our antennae twitching for any material change in consumer behaviour, but remain relentless in our focus on providing the best value, choice, and service to our consumers, " James said.
The group narrowed its expected full-year headline profit figure to a range of £365m to £385m, having previously pencilled in £360m-£400m.
"For the remainder of this year we have an early Easter, a new Samsung phone and the first week or two of our World Cup promotion to look forward to, and work continues on redefining and refocusing our Carphone Warehouse business to be a simpler, less capital-intensive model".