It's been a rough couple of years for Nokia, which has struggled to remain competitive in an increasingly cutthroat smartphone market. And though the second quarter of 2011 proved no more fruitful than those preceding it, the company does appear optimistic about the future.

According to the company's most recent financial earnings report, device and services sales declined 23 percent from the first quarter of 2011, while operating profits dropped by 47 percent.

Smart device sales seemed to take the biggest hit, declining 33 percent since Q1 and 32 percent since Q2 last year. However, Nokia's mobile businesses as a whole seemed to suffer. Despite being the largest mobile phone manufacturing for more than a decade, mobile phone sales decreased 25 percent since the first quarter.

Despite the slump, Nokia's CEO Stephen Elop called the quarter "better-than-expected" and noted that the company's partnership with Microsoft will be beneficial going forward.

"[W]hile our Q2 results were clearly disappointing, we are executing well on the initiatives that are most important to our longer term competitiveness," Elop said in a press release.

Nokia and Microsoft announced an alliance earlier this year to make Windows Phone the main operating system of Nokia smartphones. The first of such smartphones is expected to launch later this year.