Apple Grabs No. 2 Spot In U.S. Smartphone Market

And it's a good space to latch onto, as the worldwide smartphone market grew more than 29 percent and the North American smartphone market doubled in the first quarter of 2008 compared to a year ago, according to new research from Gartner.

Apple, Cupertino, Calif., is the No. 3 vendor of smartphones, selling 1.7 million units worldwide to grab a 5.3 percent share of the market, Gartner said. Apple has built that share up from nothing, offering no smartphone in its portfolio until the debut of its iPhone in June, 2007. In the U.S., Apple is the No. 2 vendor, grabbing 20 percent of the market.

Still, the vendor has a ways to go if it wants to hit No. 1 worldwide. Nokia, Espoo, Finland, holds that spot, selling 14.6 million units in the first quarter and grabbing 45.2 percent of the market. Research in Motion, Waterloo, Ontario, sits at No. 2, selling 4.3 million units to grab 13.4 percent of the market.

Globally, buyers snapped up 32.2 million smartphones in the first quarter, an increase of 29.3 percent compared to the first quarter of 2007. In North America, unit sales more than doubled to 7.3 million.

"Despite economic concerns, the smartphone market continued to expand in the United States, driven by heavy advertising and strong marketing promotions as more devices reached mass market price points," said Hugues De La Vergne, principal analyst for mobile terminals research at Gartner, in a statement. "North American operators are giving these devices strong support, as they provide higher average revenue per unit (ARPU). We expect operators to continue to make these devices the focus of 2008 promotions."