Whilst sales of mobile phones are declining, with an estimated annual fall of 4.2% globally, sales of smartphones are on the increase – up 12.7% in the first quarter compared to the same period last year. However, Gartner Research has forecast growth of 27% for the year given all the new models being introduced by the likes of Apple, Research In Motion and Nokia.

Smart phones accounted for 13.5% of mobile phone sales in the first quarter accordoing to Gartner, against 11% per cent in the first quarter of 2008.

So the smartphone will help pull mobile phone operators through the recession.

It’s estimated that multimedia-enabled smartphones could represent 50% of the total market in the next 4 years.and could be as high as 90% in 7 years.

There’s much competition in the sector and prices will gradually come down fuelling even greater demand. It will all kick off with the launch of a new Apple iPhone boasting a new operating system and an improved camera.

There’s the new Palm Pre to be released in June, which also has a new operating system that is said to give the iPhone a run for its money. Other launches are planned from RIM's BlackBerry Storm 2 and the Samsung Jack.

Nokia is market leader globally with a 41.2 % share of the smartphone market thanks to the Nokia 5800, whilst RIM has 20% of the market.

In the total mobile phone market, Nokia had a share of 36.2% in the first quarter 2009, a fall of nearly 3.00% on the same quarter 2008, whilst Samsung is number 2 with a 19.1% share, an increase of 7.00%. LG is now the number 3 brand followed by Motorola.