Report: Smartphone Sales to Hit One Billion in 2016

Smartphone sales are still on track to skyrocket during the next few years and will exceed one billion devices by 2016, IMS Research said in a new report.

For this year, IMS Research says that 420 million smartphones will be sold, accounting for 28 percent of the global handset market.

IMS tracks quarterly market share and its latest report shows that, indeed, Nokia's market share has slipped from 40 percent to 24 percent in the last year. LG has also struggled to capture market share, though it is up 3 percent from 2010.

“But despite the higher margins for smartphones, and the seemingly insatiable consumer appetite for converged devices, it is clear that not all OEMs (original equipment manufacturer) are equally positioned to capitalize on this market trend,” said IMS analyst Josh Builta in the report.

Sales of Nokia phones were down 34 percent in the second quarter compared with the previous year, though they still lead the worldwide market. Apple reported record iPhone sales, upping its market share three percent even though it hadn’t released its usual summer refresh of its handset.

Samsung and HTC have also seen impressive growth over the past year with their smartphone offerings, building considerable momentum.