Thanks to a strong fourth quarter, Apple has passed LG to become the world’s third largest cell phone vendor by volume, according to new estimates from market research firm IDC. The worldwide mobile phone market grew 6.1%  year-over-year in the fourth quarter as the feature phone market continued to decline to its lowest growth rate in two years. Vendors shipped 427.4 million phones in the fourth quarter compared to 402.8 million units in the same quarter last year. Nokia and Samsung remained the top and No.2 vendors, respectively, though Nokia’s phone shipments slid 7.9% while shipments of Samsung handsets grew 17.6% compared to the same quarter in 2010. Read on for more

“Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments,” IDC stated in a press release. ”That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.” The firm’s full press release follows below.

Worldwide Mobile Phone Market Maintains Its Growth Trajectory in the Fourth Quarter Despite Soft Demand for Feature Phones, According to IDC 

01 Feb 2012

FRAMINGHAM, Mass. February 1, 2011 – The worldwide mobile phone market grew 6.1% year over year in the fourth quarter of 2011 (4Q11), as the feature phone market declined faster than anticipated, dragging market growth down to its lowest point in over two years. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 427.4 million units in 4Q11 compared to 402.8 million units in the fourth quarter of 2010. The 6.1% year-over-year growth was higher than IDC’s forecast of 4.4% for the quarter, but weaker than the 9.3% growth in 3Q11.

“The mobile phone market exhibited unusually low growth last quarter, which shows it is not immune to weaker macroeconomic conditions worldwide,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “The introduction of high-growth products such as the iPhone 4S, which shipped in the fourth quarter, bolstered smartphone growth. Yet overall market growth fell to its lowest point since 3Q09 when the global economic recession was in full bloom.”

While smartphones continue to grow in popularity, feature phones still comprise the majority of all mobile phone shipments. “Feature phones accounted for a majority of shipments from four of the five market leaders during the quarter,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “Even though their proportion is eroding, feature phones maintain their appeal on the basis of price and ease of use.

“At the same time, feature phones are fighting to maintain their market share,” added Llamas. “To meet the challenge, feature phones are becoming more like smartphones, incorporating mobile Internet and third-party applications. While this may not stem the smartphone tide, it should slow down the rate at which smartphones are selected over feature phones.”

Regional Highlights

• In Asia/Pacific (excluding Japan), the feature phone market declined in conjunction with the region’s largest feature phone markets – China, India, and Indonesia. The impact on phone demand due to the holiday season, which generally means a sales uplift, was minimal in this category. Meanwhile, smartphones maintained their growth momentum as the iPhone 4S was well received in Australia, Hong Kong, Korea, and Taiwan. Competition in the Android market intensified as mid-range vendors, such as Lenovo, Coolpad, and Huawei, shipped large numbers in their home market of China. Elsewhere, the rest of the Android market was dominated by Samsung, followed by HTC and LG. Windows Phone gained some momentum thanks to sales of the HTC Titan and Radar and Nokia Lumia. In Japan, pent-up demand for mobile phones after last year’s natural disasters and weakened economy meant unusually high growth for the country’s mobile phone market. Smartphone sellers, such as Apple, fared particularly well while non-Japanese vendors continue to make incremental gains in the market.

• The Western European mobile phone market was impacted by lower demand, a result of the worsening economic environment. Smartphone growth was not enough to offset the feature phones decline, despite excellent performances from Apple and Samsung. Nokia experienced another difficult quarter as a result of its transition towards Windows Phones. Feature phone shipments were near historic lows, supported primarily by very low-end devices. Overall, the Central Europe, Middle East and Africa (CEMA) markets showed strong double-digit growth due in large part to Samsung’s continued strength in the regions. Bucking its global troubles, Nokia shipments flattened out in the regions after a strong third quarter, enabling it to remain the market leader in the regions. Apple continued to make quiet progress in the regions as well.

• In North America, smartphones held the spotlight with the launch of the Apple iPhone 4S, while LTE smartphones from HTC, LG, Motorola, and Samsung also made important gains. Research In Motion launched several new phones running on BB OS 7 during the quarter, and signaled a late 2012 timetable for its first BlackBerry 10 smartphones to reach the market, leaving an opportunity to its competitors to attack its market share.

• Smartphones also took center stage in Latin America with the launch of multiple models across the region, particularly sub-$200 Android models. The low price points have enabled broader appeal, and have also found placement among popular prepaid markets. Although smartphones continued to grab attention, low-cost feature phones ruled the market, with strong participation from Nokia, Samsung, and multiple Chinese vendors.

Vendor Highlights

Nokia finished the year exactly where it began: as the undisputed leader of total mobile phone shipments. The company took another step in its storied transition, having officially launched its first Windows Phone-powered Lumia smartphones and its Asha line of smartphone-like feature phones. While both have received positive response from the market, Nokia has been quick to adjust its retail experience, customer engagement, and hardware bug fixes. At the same time, the increased focus on the Lumia, combined with changing market conditions in key markets, has prompted Nokia to change its strategy on Symbian smartphones. Fewer Symbian devices will be sold in 2012. Still, Nokia’s broad distribution around the world and manufacturing capabilities make it a serious contender to maintain its leadership position.

Samsung finished the quarter and the year reaching new record levels: breaking the 90 million unit mark for the first time in a single quarter and breaking the 300 million mark for the first time in a single year. Leading the charge for Samsung was its growing smartphone volumes, boosted by the release of several high-end devices (Galaxy S II, Galaxy Note, Galaxy Nexus), mass market models (Galaxy Ace, and Galaxy Y), and new Windows Phone smartphones (Focus Flash and the Focus S). These, along with its own steadily growing feature phone volumes, pushed Samsung closer to market leader Nokia, with fewer than 20 million units separating them in 4Q11.

Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments. That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.

LG‘s total volumes declined for the third consecutive quarter, sinking to levels not seen since the second quarter of 2007. Driving this result was a combination of waning interest in its aging feature phones and stalled smartphone volumes. In addition, from a full year perspective, LG posted the largest full year-over-year decline among the leading vendors. Still, the quarter did have some bright spots, including a return to profitability and a warm reception for its Optimus LTE smartphones across multiple markets. 2012 will feature more smartphones from LG, especially LTE-powered models, but the competition has similar smartphone strategies.

Chinese vendor ZTE nearly tied with LG for fourth place, with fewer than a million units separating the two vendors. Long known as a purveyor of entry level devices, ZTE’s smartphones increasingly moved into the spotlight. The company’s primary targets included countries throughout Asia/Pacific, but it also gained presence in EMEA and Latin America, and branched out into North America. Key models for the quarter included its popular mass-market Blade and mid-range Skate Android smartphones, and recently the company added its first Windows Phone-powered smartphone, the Tania.

With Research In Motion’s annual shareholder meeting scheduled to take place later today, one popular RIM-focused analyst is calling for the company to split its handset and network businesses into two separate companies. “RIM’s organization, like its handsets, needs modernization. By acting now, splitting RIM into network and handset businesses may target opportunities and unlock significant shareholder value,” RBC Capital Markets Managing Director Mike Abramsky wrote in a note to investors on Tuesday. “RIM’s end-to-end solution was conceived when data devices and networks were nascent — but times have changed,” the analyst continued. Abramsky believes the standalone network business can target a market of roughly 400 million Android devices, Windows Phones, tablets and other devices with “affordable, efficient, cross-platform mobile push messaging, social networking, cloud and business data services (and software)” that is already interconnected with 595 carriers around the globe. On the other end, splitting off RIM’s devices business could accelerate handset innovation, strengthen developer relationships and help the company prioritize its customers and developers over its carrier partners — a sentiment thought by some to be paramount to RIM’s success moving forward. Abramsky reiterated his price target of $35 for RIM stock, noting above-average risk.

We’ve just been sent a shot of AT&T’s upcoming Facebook-centric device, the AT&T HTC Status. The device looks pretty identical to the European HTC ChaCha, save for the obvious AT&T branding. We exclusively reported the HTC Status would be the official name of the device here in the U.S., and now that it’s confirmed, we have to say, it’s one of the most logical names for a device we can think of in recent memory. One more shot of the Facebook phone that’s not a Facebook phone, after the break.

Apple, a company many said had repeatedly delayed the development and launch of the iPhone for fear that it might cannibalize its iPod business, is now a “mobile devices company” with a smartphone that is undoubtedly its flagship device. Chief Executive Steve Jobs and Chief Operating Officer Tim Cook have both publicly acknowledged this major transition on several occasions, including on stage while unveiling the iPad and on earnings calls while speaking with analysts. Apple is growing at an unheard of pace and stockpiling mountains of cash, all thanks to its mobile business. Personal Computers, Apple’s core business for nearly 30 years, now play second fiddle to the company’s mobile devices in terms of both revenue and mind share. On the other side of the table, old rival Microsoft is doing all it can to regain its footing in the mobile space after letting its Windows Mobile platform grow stale and moldy. Windows Mobile’s replacement, Windows Phone, is still in its infancy but early reports have suggested adoption has been slow at best. So where does Microsoft go from here?

The Internet erupted following our report covering industry insider Eldar Murtazin’s claim that Microsoft has struck a deal to purchase Nokia’s cell phone business for $19 billion. Murtazin has a long track record of solid Nokia scoops, and he was the first person to report that the Finnish phone maker would adopt Microsoft’s Windows Phone platform for its smartphones starting later this year. While his new claim is anything but confirmed, it’s not as far fetched as some might think. In fact, a deal to dump Nokia’s phone business could actually be considered a continuation of former Nokia CEO Olli-Pekka Kallasvuo vision.

The ex-Nokia chief lead a major reorganization that began several years ago in an effort to transition the company away from being a devices company. Instead, Kallasvuo believed Nokia’s future was in software and services. Subsequent acquisitions of companies like Navteq and the eventual launch of Nokia’s Ovi suite would set the phone maker on this new course, but the transition came at a time when the company’s smartphones were leapfrogged by Android and iOS devices, and revenue began to sink along with the firm’s market share.

But perhaps Nokia was on the right track. Perhaps Kallasvuo’s vision of Nokia as a software company is shared by new CEO Stephen Elop, who some pundits believe was brought on board solely to preside over a union with Microsoft, his former employer. Those pundits were painted as conspiracy theorists until Nokia announced this past February that it would adopt Windows Phone as its smartphone platform of the future. Was that deal just the beginning? It’s not so crazy to imagine a role reversal of sorts, where Microsoft could orchestrate the bigger picture while Nokia supplies the software and services that power the Windows Phone platform. Plenty of companies have built monstrous businesses by supplying software to hardware makers — one such company, of course, is Microsoft.

But Microsoft is a different story right now. It is a PC OS company at its core, and therein lies the problem: the PC OS business isn’t what it used to be. As such, Microsoft has spent a considerable amount of time and resources fanning out its software and service portfolio in order to spread out its net. It’s doing a good job, all things considered, but one company found a better path to take not long ago. That company is Apple, and that path is mobile.

It would certainly be quite an interesting piece of irony. For years, Apple nipped at Microsoft’s heels while chasing the Redmond-based giant’s computer business. Then in 2007, Apple planted seeds that would sprout into one of the most successful technology ventures of recent history: iOS. The iPhone, the iPad, the iPod touch… a trio of mobile devices that have made Apple one of the biggest technology companies in the world.

Apple spent decades trying to become the next Microsoft. Now, from atop a mountain of mobile devices, Apple may finally be able to sit and watch while Microsoft tries to become the next Apple.

9to5Mac is reporting that the next iPhone, the iPhone 4S as it’s being referred to, will feature the LED flash for the camera on the opposite side of the case. There have been reports from a small group of individuals experiencing camera problems due to the iPhone’s built-in flash, and this looks like a way to solve the issue. Take a look for yourselves at supposed leaked parts from the upcoming iPhone 4S above. For more information on the iPhone 4S, make sure to check out our exclusive photos of the iPhone 4S coming to T-Mobile. 

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According to a report filed by Bloomberg Businessweek, Google is beginning to shorten the proverbial leash that Android licensees are currently attached to. Citing “dozens” of industry executives working at “key companies in the Android ecosystem,” the publication writes that Google will need to approve the future Android-plans of its software partners in exchange for early access to upcoming builds of the mobile operating system. “There will be no more willy-nilly tweaks to the software,” reads the report. “No more partnerships formed outside of Google’s purview.”

The report goes on to note that over the past several months, Google has been asking Android distributors to sign a “non-fragmentation clause,” that gives the search giant the “final say” on how manufacturers can “tweak the code.” Bloomberg also casually mentions that Facebook is one of the parties upset about that particular measure, as it has “been working to fashion its own variant of Android for smartphones.”

The article also suggests that Google may have tried to delay the release of Verizon Wireless Android devices that ship with the Bing experience as the default. ”There have been enough run-ins to trigger complaints with the Justice Department,” the report continues.

Google did not immediately respond to a request for comment.

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A few days ago Google was made aware that there were over 20 apps in the Android Market that were up to no good. These malicious apps gained system-level access to your handset when downloaded and would intercept and covertly transmit private data to 3rd party servers. Some of these apps have been downloaded more than 50,000 times. To try and fix the problem, Google has started using a remote kill switch feature in Android to wirelessly nuke those installed apps on user’s handsets. That’s not the entire story, though, as Google is actually installing new code in the process. The new code undoes the exploit and prevents your data from being shared, and it’s kind of creepy to plainly see how much control Google has over your Android phone from afar. Affected users have started receiving emails that the process has been completed.

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It looks like AT&T is aiming to recapitalize on revenues generated from handset sales. Several third-party wireless resellers — including Wirefly — have reported that beginning this March, they will no longer offer AT&T devices or services. In a letter to customers, Wirefly CEO, Andy Zeinfeld, noted that his company is committed to providing great selection and savings along with straightforward pricing; something Mr. Zeinfeld said is no longer possible with AT&T.

“It is with regret that I must inform you that effective March, 2011, we will no longer offer AT&T products and services on Wirefly.com,” writes Mr. Zeinfeld.

Wirefly is not, however, the only one being put on AT&T probation. Online retailer LetsTalk sent out the following note to its affiliates:

Effective March 8th, 2011, LetsTalk as well as other web indirect agents [...], will no longer be able to offer AT&T Wireless as a carrier option to our customers.  The primary reasons given for this change in AT&T’s business strategy were centered around AT&T cost savings and retrenchment.

It is still unclear how other independent, third-party retailers — like Amazon Wireless — will be affected; the “business strategy” that AT&T modified causing this third-party exodus is also unknown.

Wirefly declined to further comment on the situation and AT&T did not respond to BGR‘s request for a statement.

Read [Wirefly] Read [Wireless and Mobile News]

We’re here and ready to go at Samsung’s Mobile World Congress 2011 event. While the Samsung Galaxy S II and Samsung Galaxy Tab II have popped up online, we’re sure there will still be a few surprises in store for us. Hit the break for all the live coverage!

12:26PM:We're here, front and center. The event should begin right around 7:00PM CET, 1:00PM ET.

12:28PM:Looks like a full house.

12:31PM:We should probably mention that Samsung decided not to provide Wi-Fi at this event. We, like the other 400 people here, are working off a mobile broadband card. *Fingers Crossed*

12:37PM:Not much to report. Nondescript rock music and black, underwhelming podiums.

12:48PM:Yup... still waiting.

12:56PM:Lights are down... HERE WE GO!

12:57PM:Gettings a countdown from 10... 9...

12:58PM:Corny videos? Check!

12:58PM:Cue the orchestra!

12:58PM:

12:59PM:If you can't tell, the left half of the orchestra is playing with Galaxy products... the right, actual instruments.

1:00PM:Sammy's really bringing the drama. No persons of relevance on stage yet.

1:01PM:Our MC for the evening is Kim Titus.

1:03PM:Mr. Titus is director of Public Communications (for those wondering).

1:03PM:Giving thanks to various groups.

1:04PM:Talking about events Samsung has been running around Barcelona.

1:05PM:"I can promise that this will be time well spent. We're going to showcase a revolutionary product."

1:05PM:Here comes the President, JK Shin to tell us.

1:06PM:"What is driving Samsung's strategy in the short and long term?"

1:07PM:"Last year at MWC, I said 2010 would be remarkable year for mobile."

1:07PM:"In 2010 we sold about 25 million smartphones and tablets."

1:07PM:"Since launching the Samsung Galaxy S we've sold over 10 million units and become the #1 smartphone manufacturer in the world."

1:08PM:"From everyone at Samsung, thank you."

1:08PM:"Demand for smartphones and tablets will continue to grow steadily in 2011."

1:09PM:"Samsung aims enrich our lives with mobile. Making it easy enough for everyone to enjoy."

1:10PM:"2011 is the year of smart mobile devices."

1:11PM:"How do we create this new generation of smart mobile devices?"

1:11PM:"They need to deliver in three areas: screen, speed, and content."

1:12PM:"Samsung will deliver this with the Samsung Galaxy S II."

1:12PM:Super AMOLED Plus, faster dual-core processor.

1:13PM:"We're delivering an intuitive UI to fulfill the content piece."

1:14PM:Introducing four hubs: Reders hub, Game, Hub, Music Hub, and Social Hub.

1:14PM:"Powerful revolution of the original Galaxy S. Thinnest and lightest design ever and allows us to do more with less."

1:15PM:Mr. Shin is exiting.

1:16PM:Thomas Richter and Andrew Coughlin are up next.

1:17PM:"More with less is this years theme."

1:17PM:"Samsung will be making a statement tonight about the mobile evolution."

1:18PM:We keep hearing the same things over and over again... oh, here's a new one: 1,600mAh battery.

1:19PM:8.49mm thick and 116grams in weight.

1:20PM:We're seeing a video that doesn't tell us anything specific about the phone... other than its magical and thin.

1:20PM:"Your life is a Galaxy" seems to be a new slogan.

1:20PM:More user testimonial videos.

1:22PM:We've just heard, for the 8th time, it has a 4.3-inch Super AMOLED display...

1:23PM:0.01 millisecond response time on the Super AMOLED Plus display. IPS has a .25 millisecond response time.

1:23PM:Super AMOLED Plus has 18% power reduction over previous AMOLEDs

1:24PM:"All new customizable UX."

1:24PM:The Reader Hub will give users access to hundreds of magazines in dozens of languages.

1:26PM:David Wadhwani, Senior VP of Adobe, is on stage. Talking about collaboration with Samsung.

1:27PM:Ok, he's done.

1:28PM:Galaxy S II will have NFC technology embedded in it.

1:28PM:But will be available in non-NFC models as well.

1:30PM:We're seeing a gag-inducing video about "Jim in Pittsburgh"... also known as Mr. Cold (don't ask, just be thankful you weren't here to see it).

1:31PM:"8-megapixel camera with LED Flash."

1:31PM:"2 megapixel front-facing camera."

1:31PM:AllShare (DLNA) media sharing.

1:33PM:Sidebar: Samsung is wheeling out these marketing managers that are explaining (at an excruciatingly slow space) the features of the Gally S II around these user narratives. It's kind of whack.

1:34PM:With be an HTC-like web portal that will allow for remote tracking, locking, whipping, and tracking.

1:34PM:"Samsung will be offering a more personal and powerful cloud service later this year... look for it."

1:38PM:We just saw a video of a elderly woman who claims she was "living the best days of her life" thanks to her Galaxy S. Her name is Amy. The features we're focusing on are Samsung Voice Commander and social hub.

1:39PM:Google's voice translation system will be built into the Galaxy S interface.

1:43PM:"30fps encoding and decoding of 1080p video."

1:43PM:"Game Hub will give users access to networked games."

1:44PM:Okay, this is dragging. We're going to take a break and wait for the Tab II (hopefully it moves quicker).

2:03PM:aaaaaand we're back...

2:03PM:Introducing the Samsung Galaxy Tab 10.1

2:03PM:No specs... no nothing

2:05PM:We're being told we'll get to see it tomorrow on the show floor.

2:06PM:Here are the images we could grab...

2:07PM:Belkin is on stage talking about products they wil make specific for Samsung.

2:08PM:10.1-inch screen, 599 grams, 6,200mAh battery

2:08PM:WXGA screen, Android 3.0

2:09PM:Dual-core processor, 8MP main camera, 2MP front camera, full HD recording and playback. 1280 x 800 pixel resolution.

2:11PM:and that's it! we're going to try and get our dirty little mits on these new devices.

According to a report filed by Mobilized, the nation’s fourth largest carrier, T-Mobile, plans on focusing its CES efforts on HSPA+, Android, and tablet computers. Mark McDiarmid, T-Mo’s senior director of engineering, sat down with the blog and noted that his company will outline plans for its ultra-fast 42Mbps HSPA+ network at the show. Mr. McDiarmid also mentioned that devices equipped with HSPA+ radios capable of taking advantage of the higher speeds would come to market sometime next year. A post-interview email expanded on the carrier’s CES plans:

T-Mobile is big on Android, big on faster 4G speeds and big on 4G devices including tablets. We will continue to drive innovation on these fronts in 2011.

We wouldn’t be adverse to hearing about some 42Mbps, HSPA+ handsets and tablets… even if we do have to listen to them be referred to as 4G.

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Blog DigiTimes is reporting that HTC has informed suppliers of its intentions to manufacture 60 million mobile handsets in 2011. The information comes courtesy of anonymous sources with access to an “executive summit” HTC recently held in Taipei; the purported event had 200 executives from over 100 companies in attendance. In 2010, the Quietly Brilliant company shipped 20 million mobile units to its sales channels, making the 60 million units figure, a 200% increase, even more ambitious.

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Long the champion for Rural wireless carriers, the Rural Cellular Association has again championed the cause of unlocking handsets by pointing to the recent “We’re going SIM-Free” announcement by NTT DoCoMo. The Rural Cellular association took its case to the FCC in a letter that praises NTT DoCoMo’s pro-consumer decision to unlock its handsets and urges the FCC to encourage US-based wireless carriers to take similar steps. The RCA has been pushing this initiative for over two years to no avail; with the FCC a year into its  investigation of carrier exclusivity and its effect on consumer choice in the US, perhaps the time is now for this proposal to fall on some non-deaf ears?

[Via Information Week]

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Well, that rumor from earlier was definitely correct, folks! Apple has iPhone OS 4.0.1 ready to go through iTunes. Let us know if this is anything more than the graphical signal representation fix and the formula to calculate the bars to display, ok?

Thanks to our tipsters!

One of our Verizon Wireless connects sent us in a pretty nice document just moments ago… It’s Verizon Wireless’ summer device catalog, and we have it in its entirety. What’s most surprising is the inclusion of the Motorola Droid 2, a device Verizon Wireless has not announced, taking basically center stage on some of the pages. Thanks to the Summer / Fall catalog, we do have some confirmed specifications on the Motorola Droid 2: 8GB memory card preinstalled, 5 megapixel camera, 3G Mobile Hotspot functionality, and 1GHz CPU. There is also confirmation of the Pantech Jest, the Samsung Intensity 2 makes an appearance, as well as the Verizon Wireless Salute, and finally the Samsung Gusto rounds off the feature phones. The entire device catalog is in our gallery ready to go!

Click on over to our Verizon Wireless Summer device catalog gallery!