The success of iPhone 3G sales in the third quarter of 2008 propelled the Mac OS X to the No. 3 position in the global OS provider rankings. For the first time, iPhone sales exceeded sales of Microsoft Windows Mobile devices worldwide and in North America. In the shorter term, open-source initiatives like Android and Symbian Foundation will challenge Windows Mobile's licensing model. In addition, the lack of a competitive user interface will continue to limit Microsoft's mobile device usability when facing competitive consumer smartphones.

"In 2009, application portfolios will become one of the key strategic considerations for smartphone market players and, if successful, they deliver an alternative revenue stream and will improve consumer stickiness," Ms Cozza said.

On a regional level, North America was the fastest growing market, with a 68 per cent increase in the third quarter of 2008. RIM and Apple did particularly well in the region with both vendors accounting for more than 70 percent of the smartphone market in the third quarter of 2008. Apple regained second position behind RIM with 25.4 percent market share.

Smartphone sales in Europe, the Middle East and Africa (EMEA) increased 14 per cent year-on-year. The region saw Nokia's share decline nearly 8 percentage points in the third quarter of 2008 but still maintaining its leading position and saw Apple gain the No. 2 spot with 15.6 per cent share, moving in front of HTC and RIM. 

The markets in Asia/Pacific and Japan declined 11 per cent and 23 per cent, respectively in the third quarter of 2008. In Latin America, despite the decline in sales for all handsets, the smartphone market grew 56 per cent in the third quarter of 2008. The sales were bolstered by the official introduction of Apple's iPhone 3G across a dozen of countries.