Mobile phone shipments were up for all major vendors in the second quarter except Motorola, which slipped to third place as Samsung passed it. Nokia remained in its frontrunner position with a 37% market share, according to rankings announced by IDC Thursday,

But it was a handset that didn't make the top five positions -- Apple's iPhone -- that captured the attention of the market research firm.

"The iPhone is likely to have a disproportionately large impact on the industry," said Shiv K. Bakhshi, IDC's director of worldwide mobile device research, in a statement. "It has pushed the envelope on industrial design and user interfaces for all vendors. It could forever alter the structural relationship between device vendors and mobile operators who have traditionally controlled the mobile environment, especially in the U.S."

Bakhshi continued: "Equally important, the unparalleled hype surrounding the iPhone could lift mobile devices out of a utilitarian frame of reference and place them squarely in the fashion frame of reference."

IDC said Motorola had reported a "dismal performance" in handset shipments in the second quarter. Motorola's sinking handset performance has put pressure on its top management, and the company's challenges are now compounded as Samsung pushed Motorola into third place.

IDC noted that Samsung shipped 37.4 million units in the quarter for a market share of 13.7%, fueled in large part by its Ultra Special devices and an increase in shipments in emerging markets. Motorola ran into slowing business in Asia, the Middle East, Africa, and even Europe, although the challenge in Europe was marginal.

"Motorola is seeking to reverse its fortunes by installing a new management team, refreshing its product portfolio, lowering inventory, and reducing its workforce, but expects to face more challenges before recovering," according to the IDC report. Motorola's market share was reported at 13%.

Nokia continued its top position, although IDC said it was struggling somewhat in North America. Runners-up were Sony Ericsson with a 9.1% market share and LG with 7%.