Amid ongoing competitive challenges, Nokia has announced a decline in its net profit for the three month period ended June 2010.

The world's biggest mobile phone manufacturer reported net profit worth 104 million euros (USD 133 million) as against 287 million euros during the corresponding period of 2009.

The company's sales during the second quarter grew by 1% year-on-year to 10 billion euros and remained 5% up as against the preceding quarter.

Finnish giant said that the quarterly outcomes were in proportion to what market analysts had predicted and the company's declaration during the last month, which lowered its viewpoint.

During the period under review, Nokia sold 111.1 million units, which showed an increase of 8% year-on-year and 3% surge as compared to the first quarter of existing quarter.

The tally comprised 24 million smartphones, a 42% growth year-on-year.

According to Olli-Pekka Kallasvuo, Nokia chief executive stated that the worldwide cell phone market continued to nurture speedily regardless of augmented rivalry from all sides.

He added that the company carries on renewing its smartphone range.

Nokia projected that it covered up 33% of the worldwide cellular phone market share during the period under review, marginally down year-on-year and the same as in the first quarter of 2010.

In its viewpoint, Nokia estimated that the worldwide handset market for the existing year will go up by 10% as against last year (2009), and that its market share will remain level.

During the second-quarter, Nokia's network business announced a 5% fall in net sales year-on-year to 3 billion euros.