"The competitive reality of the cell phone market in 2012 was 'live by the smartphone; die by the smartphone,'" said Wayne Lam, senior analyst for wireless communications at IHS, in a statement.
"Smartphones represent the fastest-growing segment of the cell phone market and will account for nearly half of all wireless handset shipments for all of 2012. Samsung's successes and Nokia's struggles in the cell phone market this year were determined entirely by the two companies' divergent fortunes in the smartphone sector," he also said in the statement.
Samsung takes the number one spot, Apple second, Nokia third, HTC fourth, and RIM fifth, according to preliminary forecast of Top-5 smartphone handset.
Together Samsung and Apple make up nearly 50 percent of all smartphones shipped.
So why did Samsung shipments rise, while Nokia shipments decline? Why is Samsung beating out Apple?
Samsung sprung ahead of the others due to its low-cost Galaxy line of phones baked with the Android operating system. As far as consumers go, it is possible that Samsung appeals to more people, than Apple's more exclusive iPhone.
As for production, Samsung follows the market for design and manufacturing, releasing new products often. Nokia has the Windows Phone operating system, so that may contribute to its decline in shipments. This is a huge change in its position, as Nokia has held the number one spot (in all cellular handsets, not just smartphones) since 1998.
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