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Analysts suggested that one of the reasons leading to rapid growth in the smartphone market was the increasing demand for high functionality phones. Handsets with touchscreen, in particular, have played a major role. Apple shipped 3.9 million units of its iPhone 3G during Q1, hence doubling Apple’s market share from 5.3% in last year’s Q1 to 10.8% this year. Research In Motion (RIM) also demonstrated positive performance by occupying 19.9% market share, reporting strong sales in its BlackBerry devices.

While Apple is planning to launch new iPhones this summer, RIM is also likely to introduce BlackBerry Storm 2 soon, which is a future version of the popular BlackBerry Storm came out last year. On the Android side, HTC, Samsung, and Motorola are all prepared for bringing out new devices based on Google's open source mobile OS.

The global cell phone sales in this year’s Q1 was so far the biggest on-quarter contraction since Gartner started monitoring the market in 2001. Among the total sales during the quarter, Nokia sold 97.4 million units of cell phones and continued to lead its competitors. But its market share dropped to 36.2% from 39.1% recorded in Q1 of 2008.

Following Nokia, Samsung reported selling 51.4 million units in Q1, ranking the second on the list. It has greatly improved its market share by 4.7% to 19.1% during the quarter. LG, Motorola and Sony Ericsson made up the rest of the top five manufacturers.

In view of strong sales growth in smartphones, many cell phone-makers are likely to focus more on developing smartphones in the future, especially improving the user interfaces and services to meet increasing demand. However, many analysts believe that an overall recovery in the cell phone market will not come until 2011.