Nokia released its fourth quarter 2013 earnings on Thursday and, despite a number of new smartphone launches over the past few months, the company noted a decline in sales.

The company's phone business, which Microsoft is in the process of acquiring, reported a five percent decline in sales quarter-on-quarter. Nokia sold 8.2 million smartphones during the fourth quarter, down from 8.8 million sold in the third quarter of 2013. "The decline in Smart Devices net sales was due to lower volumes, affected by competitive industry dynamics including the strong momentum of competing smartphone platforms, as well as our portfolio transition from Symbian products to Lumia products," Nokia explained.

Meanwhile, overall, Nokia said its net sales, which includes handsets, NSN, HERE and Advanced Technologies businesses, came in at €3.5 billion, up 18 percent over the previous quarter. Its full year net sales fell in at €12.7 billion, however, which was a 17 percent decline over 2012. The firm also noted an operating profit of €408 million.

"The fourth quarter of 2013 was a watershed moment in Nokia's history. Having received overwhelmingly strong support from our shareholders at our extraordinary general meeting in November for the sale of our phones business to Microsoft, we are diligently working towards defining Nokia's future direction. I am pleased with the progress we have made thus far in our strategy evaluation and excited by the opportunities ahead for each of our three continuing businesses: NSN, HERE and Advanced Technologies."

Nokia said the sale of its devices and services business to Microsoft is still on track to close this quarter.