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“With the release of Android-based handsets from several different OEMs, most recently Motorola, but also HTC, Samsung LG, and Sony Ericsson, the buzz surrounding Android OS is reaching critical mass,” William Stofega, research manager with IDC’s mobile devices technology and trends team, said in a statement. “With an expanding portfolio of handsets and a just released update of the code, Android is poised to mount a serious challenge to the incumbent smartphone OEMs for the first time in its brief history.”

Overall, IDC expects worldwide demand for smartphones to continue, outpacing the general cell phone market.

“As users expect greater functionality from their devices beyond telephony, we believe the converged mobile device market to grow faster than the overall mobile phone market,” Ramon Llamas, senior research analyst with IDC’s mobile devices technology and trends team, said in a statement.

A recent report from In-Stat echoed IDC’s findings but focused specifically on Wi-Fi handsets. In-Stat found that Nokia still enjoys a leading slice of this market but has lost about 15 percent of its share over the past year to Apple and RIM.

Among smartphone vendors, Nokia still enjoys the greatest market share, according to IDC, with a 37.9 percent slice for the third quarter. Though the company has struggled in North America, it commands a huge worldwide lead. Results were aided by Nokia’s pricey but popular N97and E71 phones. IDC is also interested to see how Nokia’s new N900 smartphone/tablet fares with high-end users.

The demand for BlackBerry devices helped Research In Motion’s third-quarter market share jump 35.7 percent over the same quarter last year–the highest jump of any vendor. With a 19 percent chunk of the market, the company now trails Nokia in second place. Though RIM has done best in North America, it’s also seen an improvement in buisness overseas, says IDC. During the third quarter, the company debuted two new smartphones–the Blackberry Tour and Curve 8520. Read More »

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