Global smartphone shipments grew a huge 50 percent year-over-year, to reach 54 million units in Q1 from 36 million in the previous year's quarter, according to a study by Strategy Analytics. This was the strongest period of growth for almost three years and smartphones continue to lead the handset industry out of recession. Sales are being driven by healthy operator subsidies, vigorous competition between vendors and a growing tide of lower-cost models using operating software like Symbian and Android. Tom Kang, director at Strategy Analytics, said global smartphone shipments accounted for 18 percent of handset volumes. Nokia shipped a record 21.5 million smartphones worldwide in Q1, rising an above-average 57 percent from 13.7 million units a year earlier. Nokia acquired 40 percent global smartphone market share. China, South America and Africa Middle East were regional hotspots for Nokia, while North America remains a problem-child and one that is crimping profits and still badly needs attention. RIM shipped 10.6 million smartphones worldwide with a market share of 19.7 percent, comfortably beating Apple's record 8.8 million units during the quarter. RIM has become the largest mobile device vendor of North American origin, ahead of rivals Apple and Motorola. However, RIM's annual growth rate slowed to just 45 percent in Q1 and its new Blackberry OS 6.0 upgrade due in Q3 2010 is badly needed. The global smartphone market will head in two broad directions this year. Some smartphone vendors, such as Nokia, will chase growing mid-tier volumes in emerging markets such as China and India. Other brands, such as Motorola, will focus on mature markets like the US and explore a new wave of services beyond internet browsing and e-mail such as high-quality video and navigation.
