Updates to this story
Nokia's profits have fallen in the past three months as the company struggles to compete against the likes of Apple in the smartphone market.
In its Q2 financial report, the handset company showed that its profits had fallen by 40 percent compared to this time last year.
Despite this it listed its net sales as being up one percent from last year making it a €10 billion (£8.4 billion) profit.
However, underlying profits fell by 27 percent. It also said its Devices & Services net sales of €6.8 billion (£4.2 billion), which had previously been up by three percent year-on-year and two percent sequentially, was now down by two percent and one percent at constant currency. Its total mobile device volume of 111.1 million units was up by three percent compared to its previous 8 percent.
Olli-Pekka Kallasvuo moved to justify the figures, saying: “Despite facing continuing competitive challenges, we ended the second quarter with several reasons to be optimistic about our future. For one, the global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong. We are also encouraged by the solid second quarter performance of our Mobile Phones business, helped by an improving line-up of affordable models.
"In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian 3 devices, will have a user experience superior to that of any smartphone Nokia has created. The Nokia N8 will be followed soon thereafter by further Symbian3 smartphones that we are confident will give the platform broader appeal and reach, and kick-start Nokia’s fightback at the higher end of the market.”
He also added that he predicted the global handset market volume would grow by 10 percent this year.
However, the N8, which Nokia is pinning its hopes on has already been delayed until later this year meaning the company is constantly delaying boosting its competition in the smartphone market.
The average selling price of a Nokia handset dropped to €61 (£52), while the average of its smartphones prices fell eight percent quarter-on-quarter, and down 21 percent over the last year.