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Nokia Oyj, the world’s biggest maker of mobile phones, posted a steeper-than-expected 40 percent drop in second-quarter profit on competition from Apple Inc.’s iPhone and devices based on Google Inc.’s Android software.

Net income fell to 227 million euros ($291 million), or 6 cents a share, from 380 million euros, or 10 cents, a year earlier, after Nokia last month cut forecasts for the period’s revenue and margins. Analysts had predicted profit of 285 million euros, according to the average estimates in a Bloomberg survey. Sales rose 0.9 percent to 10 billion euros, the Espoo, Finland-based company said in a statement today.

According to foreign media, Nokia’s margins have suffered from its failure to bring out a high-end handset to take on Apple’s iPhone. The company cut forecasts twice in three months over delays in finishing the software for the N8, its new flagship handset. Nokia shares have lost two-thirds of their value since the iPhone’s June 2007 introduction, sparking speculation Nokia may seek to a new chief executive officer to replace Olli-Pekka Kallasvuo.