Having a device that enables users to take pictures, e-mail colleagues, browse the web, and send text messages is no longer a nice-to-have device but a need-to-have device. That mentality is creating a recession-proof smartphone market.

While technology businesses continue to suffer considering of the downturn in the economy, the smartphone market continues to thrive, according a report by IDC, a technology research firm. In fact, in the third quarter the market set a new record for quarterly shipments, according to IDC. Vendors shipped 43.3 million units worldwide during the quarter, an increase of 4.2 percent from the 41.5 million shipped in the same quarter in 2008.

The five mobile-device makers leading the market are Apple, HTC, Nokia, Research In Motion, and Samsung. Nokia had the highest market share in the quarter with 37.9 percent and 16.4 million units shipped.

Behind Nokia was RIM, with 19 percent of the market and 8.2 million units shipped. Apple,

HTC and Samsung each had less than eight percent of the market.

Driving Force

There is no one driving force behind the increase in shipments of smartphones for the quarter, analysts say.

“It is a perfect storm,” said Ramon Llamas, mobile analyst with IDC’s Mobile Devices Technology and Trends team. “Even though there is a recession going on, demand has been steady considering humans are willing to pay more considering they are more than just phones to manufacture phone calls.”

“Think of your smartphone as not just a phone but a mobile computer sitting in the palm of your hand,” Llamas added.

Another factor increasing shipments was a lowering of prices. Apple dropped the price of its iPhone to $199.

“That was a strategic move, considering they were able to catch a lot more users that way,” Llamas said.

Other vendors, including RIM and Palm, followed Apple’s…

Original post by dhiram