Recession Can't Stop Japan's Online Shoppers

It never rains but it pours for Japan's department store operators, once the driving force behind Japan's bubble-era consumerism. This summer already-flagging sales plunged further as recession-hit consumers cut back on spending. Nature didn't help out, either, as poor weather hurt sales.

Yet, even when the recession eases and the weather improves, don't expect a big bounce in sales. These days, Japan's recession-hit shoppers increasingly prefer to shop without ever leaving home.

The numbers are startling. Using data from the Japan Direct Marketing Assn. and Nomura Research Institute [NRI], the Nikkei daily estimates online shopping sales in Japan rose 22 percent to $67.2 billion. That's despite Japan's deepest recession in the postwar era savaging consumer confidence following the collapse of Lehman Brothers last fall.

If catalog shopping is also included, the figure rises to over $86 billion -- or more than is spent in Japan's department stores or ubiquitous convenience stores. Noritaka Kobayashi, senior consultant at Nomura Research Institute in Tokyo, says that while the growth will likely slow due to the recession, the consumer e-commerce market will continue to outstrip other forms of shopping. Excluding eating out and other forms of consumption that can't be easily conducted online, Kobayashi reckons $2.2 trillion of consumption could be made from computers and cell phones. "A growing number of people are simply avoiding the trouble of visiting stores," he says. "This market has a big growth potential."

Sugomori: "Chicks in the Nest"

What explains Japanese consumers' shift to shopping online? In the last year, as the global recession pounded the Japanese economy, pundits began using the term sugomori ["chicks in the nest"] to describe people who stay home to keep outside expenses to a minimum. Shopping online is not only often cheaper, especially when compared with expensive department stores, but it also saves on transportation and eating out while shopping.

Other reasons for the rapid expansion of online shopping in Japan are perhaps more compelling -- and Japan-specific. One factor is undoubtedly the widespread use of high-speed Internet. Fast broadband connections are the norm in Japan, while high-speed Internet-enabled china mobile phones are long established. NTT DoCoMo's 3G service is now in its 10th year of operation. The upshot: Japanese young and old are comfortable and experienced online.

According to the Internal Affairs & Communications Ministry, the mobile-commerce market in 2007 was worth $7.8 billion, a 29 percent increase from the previous year. The NRI, meanwhile, estimates mobile phones account for about 20 percent of online shopping and that share will increase to 24.5 percent by 2013. "Sooner or later it will be half," says Kobayashi. He adds that many teenagers buy games, books, or accessories via mobile phone but never use a PC for e-commerce

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It helps that workers in Japan typically take long commutes, often in crowded trains. That leaves plenty of time to text, read the news, play games, or shop using a mobile phone.

Marketers are also getting savvier at appealing to mobile shoppers. While eBay isn't a big player in Japan, Rakuten, Amazon Japan, and Yahoo Japan are among Japan's most visited Web sites and are huge conduits for online shopping. Small players, meanwhile, are finding creative ways to woo Net-based shoppers. One example: In March, dozens of young women swarmed to the Tokyo Girls Collection fashion show. At the show, held in Tokyo's youthful Shibuya district, audience members could order what they saw on the runway using their mobile phones, via a dedicated retail site. In a single night, the show sold $615,000 worth of clothes.

Meticulous home-delivery service is another factor boosting online shopping. Delivery companies such as Yamato Transport, Sagawa Express, and JP Express are famously reliable. The companies usually offer to deliver within a two-hour time slot selected by the customer and are rarely late. They are also remarkably fast. Yamato, for instance, has a tieup with Amazon and other mail-order companies by which it offers next-morning delivery for orders made by midnight the previous day. And if the customer prefers, deliveries can be made to one of Japan's 50,000 convenience stores. For only a small extra fee, delivery firms will deliver frozen or chilled products, leading to the rapid expansion of online purchasing of fresh produce, such as freshly caught crab from Hokkaido or pineapple from subtropical Okinawa.

Payment options have evolved to meet customer needs and soothe fraud concerns. For consumers who don't want to input credit-card numbers over the Internet, Yamato and others offer a pay-on-delivery service. "These finely tuned delivery services are boosting the mail-order business," says Masao Ueda, chief researcher at the Distribution Economics Institute of Japan.

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How Much Radiation Does Your Cell Phone Emit?

The radiation from our cell phones has long been suspected of causing a variety of health issues and some devices do emit more radiation than others, according to a review by the Environmental Working Group.

While there is no hard link between cancer and cell phones, a recent study by the government watchdog group shows an increased risk for people who have used them for at least 10 years, USA Today reported.

The phones found to be emitting the least amount of radiation were two versions of the Samsung Impression and the Motorola Razr V8.

The ones emitting the most were the Motorola Moto VU204, the T-Mobile MyTouch 3G and the Kyocera Jax S1300.

The Federal Communications Commission, which sets standards for cell phone radiation, requires that all devices be rated at 1.6 W/kg or lower.

The industry insists the devices all fall within federal guidelines and are harmless, but recent studies showing increased risk for brain and mouth tumors for people who have used cell phones for at least 10 years," said Jane Houlihan, senior vice president of research at the Washington-based group.

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Google Android Gaining as Mobile Phone Market Sleepe

News Analysis: Google's Android phone doesn't get the kind of respect it might deserve. But Android's features and performance are allowing it to sign partnerships with multiple phone manufacturers, including T-Mobile, HTC, Motorola, LG and Acer. Soon its main competitors—Apple, RIM and Windows Mobile—might need to watch out.

Google's Android platform isn't often cited when end users discuss the leaders in the mobile phone market. Typically, those discussions are dominated by companies such as Apple, Research In Motion and even Microsoft. But it's Google that's quietly gaining ground in the space.

The company is behind more phone releases running its Android operating system than you might think. Aside from the T-Mobile G1—the first Android-based phone to hit store shelves—HTC's MyTouch 3G is currently offered to consumers. HTC also announced the Tattoo Tuesday that promises some neat functionality for European users. It's the company's fourth Android-based phone.

But HTC isn't alone. Companies like Motorola, LG and even Acer have signed on to produce Android-based products. Google's partners in the Open Handset Alliance have joined at such a rapid rate that the company hopes to have up to 20 Android-based phones available by the end of 2009. It could more than double that number by the end of 2010. And yet, Android doesn't receive the kind of respect or attention Apple does. It's an afterthought when it comes time to analyze the mobile phone market.

Admittedly, that is mainly due to the fact that Android doesn't hold the kind of market share its competitors do. In fact, it's trailing far behind Apple's iPhone, RIM's BlackBerry devices and even Windows Mobile.

But it may not stay that way much longer. Unlike Apple, which has tied its future to one product, Google decided to follow in Microsoft's footsteps and open up its software to vendors. And unlike Microsoft's Windows Mobile, which provides a subpar experience, Google's Android mobile operating system is a fine alternative to the iPhone.

The Experience

In the cell phone market, providing an experience is a key success factor. If a phone doesn't have a touch-screen, doesn't sport some kind of multitouch technology and doesn't have an App Store, most users won't find as much value in it. Those are requirements that Apple has put in place, and like it or not, its competitors have to play ball.

And Google is playing ball. Its Android operating system boasts outstanding software that appeals to just about anyone who uses it. In fact, it's a nice alternative to Apple's iPhone software.

Beyond that, the software is responsive when users tap the touch-screens. And for the most part, Android phones boast a design and feel that compares nicely to anything Apple releases. Simply put, Android phones have the looks, design and software to make them a compelling product for end users.

The App Store

But it doesn't end there. Users are still looking for an app store. Although the Android Marketplace doesn't have the more than 65,000 applications offered in Apple's App Store, Google has done a good job of bringing apps to its platform. Right now, the store has over 3,000 applications. Although that number pales in comparison to Apple's store, Google's marketplace has many more applications than RIM's BlackBerry World (about 2,000 applications) and Palm's Pre (approximately 30 applications).

There might be more variety in Apple's App Store, but many of the applications that users find in Apple's market can be downloaded onto Android phones from the Android Marketplace. Porting applications designed for the iPhone to Android-based phones isn't difficult for developers. That's a key feature as Google tries to bring more apps to its store.

Ubiquity

But perhaps the most important reason why Google has a good chance to become a leader in the mobile phone market is its strategy. Instead of offering a single phone, like Apple does, Google has partnered with several vendors to provide the software and let them do all the hard work of selling the devices. And since it's an open-source platform, those vendors can tweak the operating system to make it unique to their vision.

It's doubtful that any single Android-based phone will sell better than the hiPhone. Apple's product commands too much attention in the marketplace for that to happen. But it's not beyond the realm of possibility for Android itself to capture more market share than Apple's venerable device. With more available products, a compelling selection of apps and some nice software, many users might find that it's a solid alternative to the iPhone.

And in the process, they might just find that, at least so far, Android's experience is second only to the iPhone's.

So maybe it's time Android gets a little more respect.

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With the iPhone 3GS, Apple solidifies its leadership position in a crowded smartphone landscape.

It would be easy to dismiss the Apple iPhone 3GS as an inconsequential hardware upgrade. But to do so would underestimate how much, collectively, the phone's new features augment the iPhone experience. With the iPhone 3GS, Apple solidifies its leadership position in a crowded smartphone landscape.

On the outside, the iPhone 3GS ($299 for 32GB, or $199 for 16GB, with a two-year AT&T contract, as of 6/22/09) looks and feels virtually identical to the existing iPhone 3G (now $99 for 8GB with a two-year AT&T contract). Yes, it's disappointing that Apple made no refinements in the external case (see our review of the iPhone 3G for more detail, but it's simply a minimalist design dominated by its display and the home button beneath that display). And yes, it's curious that the colors remain the same, black or white gloss (this from the company which made sure its audio players came in every color of the spectrum).

But inside, the iPhone 3GS has been fully redesigned, with new core components (CPU, memory, integrated compass, video recorder) in different locations, no less. And together with the iPhone OS 3.0 upgrade (which makes many compelling features available to existing iPhone customers), the iPhone 3GS stands tall. After pounding on it, I can say that at the full-subsidy prices, the 3GS is a surprisingly worthy upgrade for heavy users of the phone's Web and gaming capabilities, and for general-use apps--even if you're only jumping from the iPhone 3G. Read on to learn why.

Performance

Apple has played down the upgraded component specs on the iPhone 3GS; instead, the company simply promised noticeably faster performance. And the 3GS, with its CPU boosted (to 600MHz, from the iPhone 3G's 412MHz CPU) and its memory doubled (to 256MB), indeed delivers a noticeably zippier user experience compared with the original iPhone and the iPhone 3G.

Not only do apps open faster, they respond faster, too. These differences were evident in my use over both 3G and Wi-Fi. The annoying lags for accessing data or redrawing a screen are gone; moving around from one complicated Web page to the next feels downright breezy, not onerous.

I wasn't surprised that games--I tried Oregon Trail and Peggle--were snappier, since the graphics has been bumped up, with Open GL ES 2.0 for mobile 3D graphics and, according to teardown reports, Imagination Technologies' PowerVR SGX.

But I was pleasantly surprised to have a noticeably better experience navigating apps like Marco Polo CityGuide London, a largely text-based utility with hooks into the Maps app. And the London Tube Underground map didn't need seconds to redraw as I rapidly scrolled within the map. These small differences add up in a big way (especially if you're standing on a street corner while touring in London, trying to find your way), and made for a much more pleasing experience as I pounded on apps, switching among them at will, my fingers gliding fast to move from one feature to the next.

Call quality and reception remained the usual mixed bag we've come to expect from AT&T. Calls sounded adequate, but sometimes lacked the crisp clarity I've experienced with other handsets, including the T-Mobile G1 and the T-Mobile MyTouch 3G. How much of this is attributable to the AT&T network versus the handset itself is unclear, but moot anyway, given that the phone remains locked to AT&T, and its network is the one iPhone users must contend with.

Apple's claims of longer battery life from the previous generation are true, though not by much. According to the PC World Test Center's battery life tests, the iPhone 3GS had an average talk time 6 hours and 12 minutes--only 34 minutes longer than the iPhone 3G. Still, I couldn't get through a full day of real-world usage without needing a charge (I engaged in talk and data activities, plus checking my location on a map, and shooting off some photos and videos, all with the Wi-Fi connectivity enabled). For data, the company rates the battery at up to 9 hours time over Wi-Fi, and 5 hours over 3G.

One pleasant battery-related addition is a new Battery Status indicator, which you enable In General/Usage. I'd often wondered aloud why earlier iterations of iPhone couldn't do this seemingly basic task--tell me in numbers exactly what percent of the battery life was left. I'm still trying to gauge the accuracy of this battery meter, but I'm glad to finally have it there nonetheless. Now, at least, I don't have to guess what the gauge icon represents; I know that after about 4 hours--with both Wi-Fi and 3G enabled, but no data transfers and 27 minutes of phone conversation--the battery was down from 100 percent to 78 percent.

Imaging

Beyond the performance boost, the iPhone 3GS features a notably improved imaging experience that ranks high among the hardware upgrades built into the iPhone 3GS handset. The camera jumps from 2 to 3 megapixels, a welcome if moderate increase that makes the phone's camera somewhat more viable for on-the-go snaps. And the camera now includes a video mode--finally.

In my hands-on use, I found the iPhone 3GS camera surprised in some situations, and disappointed in others. The camera app opened and was ready to shoot with just a 3-second delay. I was pleased by the autofocus and tap-to-focus features; my images were reasonably sharp, and I found that by selecting different focus points, I could change the image's exposure as well as composition.

In some shots, the focus select had minimal impact on what area of the image appeared sharp. But other shots seemed to benefit greatly, even though when the feature brightened the dark areas, it completely blew out the light areas. The macro mode works invisibly and without intervention. Still, I was annoyed that the autofocus box didn't confirm sharpness for me by turning green, as happens on many point-and-shoot cameras; sharpness was often impossible to tell on the iPhone's screen.

Though Apple boasts of improved low-light handling with the iPhone 3GS camera, I had mixed results with indoor andlow-light shots. A low-light dusk shot ended up being very grainy, with degenerating building details when viewed at full resolution. Some indoor shots looked decent, but others were barely passable and would have clearly benefitted from a flash, had Apple included one. Maybe we'll see Apple catch up to its competition by adding a flash in its next version of the iPhone handset.

Also on the wish list: software-based image stabilization. I have often found that even images shot in daylight were not sharp at full resolution, especially images I tried to shoot one-handed. With its on-screen shutter button, the iPhone's camera just doesn't lend itself to one-handed photography. And while on the topic of what's missing, the Camera Roll app still lacks integration with Web services; sure, Flickr has its own app, but that's not the same as viewing a pic and deciding to post directly from the camera roll.

The bigger news is the inclusion of video capture and editing. The iPhone 3GS camera app has a slider switch to activate the video camera, which records 30 frames per second video at 640-by-480 resolution. In video mode, the camera shutter turns into a red record button you press once to start recording, and again to end recording.

Sending video is very easy: The phone has integrated hooks into YouTube, MobileMe (Apple's $99-a-year service), and e-mail. Just select the service, and proceed from there; for YouTube, the iPhone 3GS will automatically compress the file in preparation for upload to your YouTube account. Want to trim your video before sending? No problem: The in-player iMovie-like frame editor makes snipping the beginning or end of a clip a breeze.

The videos I captured looked better than many typical camera phone images at the same resolution, and I found the inclusion of a video camera handy in a pinch when I was caught off-guard with a video opportunity and had no other camera on hand. But the iPhone 3GS can't replace the video you can capture in 720p high-definition with many digital cameras and compact video recorders like the Flip Mino HD. And like-resolution dedicated camera and camcorder devices generally have a few advantages, such as greater stability for hand-held shots, and a tripod shoe if you want to steady the image.

The video feature has a few other rough spots. You can't easily find the videos you capture: They're lumped in with the rest of the images in your Camera Roll, with the video camera icon and length running along the bottom of the thumbnail. You also can't access your videos from within the iPod music and video player. And, unfortunately, the much-ballyhooed editing feature is rather limited: Once you make an edit, it's done. You can't undo them, and you can't save a copy of the original video--annoying if you want to keep the longer video for yourself and send an excerpt to a friend, for example.

One major gripe about both the images and videos: On a Windows XP-based netbook, Windows' camera import tool brought all 257 pics and vids across to my netbook, but the order of the pics was completely jumbled compared with the order things were captured in my Camera Roll. I'm not sure where the communication failure is between the two devices, but it was very frustrating.

Voice Control

Voice dialing is fairly common, and has been for years. This is a seemingly basic feature on which the iPhone 3GS is playing catch-up. But, at least it goes further by providing a range of voice controls for both dialing and music playback. When it works, I found it a wonderfully handy feature when driving, or even when walking down a street.

Hold the Home button for a count of three (a count of two invariably took me one page to the left), and the Voice Control screen pops up. Your command options scroll across in a rush, prompting your memory of the available commands (some imprecise mutations of the "accepted" options appeared to work): Play album, previous track, play songs by, dial, call, play, what song is playing, yes, no, cancel, shuffle, play more songs like this.

I found this feature worked with varying degrees of success. If I said to dial Rita and didn't specify the number, it asked me which number I wanted. If I said Rita Home, it dialed Rita Home--even when I asked in a noisy restaurant or in a room with the TV on in the background. But Voice Control stumbled on other names, either offering the wrong name or not recognizing anything. And it missed some voice commands when a TV blared nearby. Also odd: If I said Perenson and there were three Perensons in my Contacts, it just accessed the first one in the Contacts list, and didn't ask me which of the Perensons I wanted (even though I've seen reports that say it should). I asked it to play songs by REM and it played ABBA, and sometimes I didn't say a thing and I suddenly noticed it dialing a number I hadn't asked for. Oops.

One detail worth noting: Apple makes the iPhone 3GS more accessible to vision-impaired users through its new Voice Over feature. Once enabled, the phone can talk at you as you navigate among the touchscreen icons.

Display

The iPhone 3GS has the same 3.5-inch capacitive touchscreen display as its predecessor. The display still looks beautiful, displaying images at 320-by-480-pixel resolution. But these images are a bit "warmer"--they don't have quite the vividness that they do on the iPhone 3G.

As shown by a side-by-side comparison in an earlier article, the iPhone 3G's colors pop more; it has deeper browns at the top of the notepad, and deeper grays in the keyboard. The same screen on an iPhone 3GS has a dullish gray on the keys. In both instances, the auto-brightness setting was off, and the brightness level was identical.

In some images, we detected a slightly greenish cast on the iPhone 3GS. We found the color distinction quite noticeable on screens with white backgrounds, such as the search tab, the calendar, and the photo library. While some of these differences may not have stood out when we looked at the iPhone 3GS on its own, they did when we put the new handset next to the 3G.

When asked, an Apple spokesman said the color temperature and brightness level of the display has not changed from the 3G phone. Apple also says the new oleophobic (oil-resistant) coating had no impact on the screen, as the coating is transparent.

While some aspects of the 3GS's display look dull and washed out in comparison with the 3G and even the original iPhone, I noticed a clearly visible improvement in blacks. An example was when I compared the original iPhone and the 3GS, both in the camera app, with their lenses facing a black table. The black of the table appears more dark gray than black on the original iPhone, so it's clearly washed out and too bright; the table appears to be a more pure black with the iPhone 3GS. However, in this example, the noise level of the 3GS is also abundantly clear: Parts of the image show dramatic and intrusive evidence of reddish artifacts and noise.

The aforementioned smudge-proof coating, at least, is the real deal--it attracted fewer fingerprints than an iPhone 3G did when both cameras were used similarly, and those fingerprints wiped off more easily. Another benefit: The new screen's texture has an ultrasmooth glide to it. In contrast, my fingers would more easily catch on the iPhone 3G (typically as they passed over a fingerprint or three).

Also, text appears slightly sharper on the 3GS compared with the 3G. That's surprising considering that the iPhone 3GS has the same resolution as the iPhone 3G does. Apple says that fonts on the iPhone 3GS are rendered by the phone, as opposed to being bitmaps, and that this approach accounts for the smoother and sharper appearance of text.

Everything Else--Including OS 3.0

A couple of stray features have been crammed into the iPhone 3GS, and while they may seem minor, they're sure to find their fans.

The newly integrated compass is handy for location-based and mapping applications (and if you're communing with Mother Nature). The compass has distinctive, easy-to-read graphics, and it allows applications to orient to your current position. For example, the Maps app will reorient based on your directional heading.

Nike+ support is built-in now, too. Take iPhone 3GS on a workout with you, and it can track your progress together with the $19 Nike+ accessory.

Certainly, the OS 3.0 software update, which makes many cool features available to all iPhone users, could persuade some people to decide they don't need a new handset. Among OS 3.0's features: a landscape keyboard for all core apps; an innovative and useful implementation of cut, copy, and paste, the long-elusive iPhone feature; A2DP stereo Bluetooth; push notifications, an improved call log that shows details like the time and length of a call; spotlight search for searching apps, e-mail (subjects and to/from lines), music, and more; shake to shuffle; voice memos; and support for MMS and tethering, common features bizarrely not available to AT&T until later this summer.

Although the iPhone 3GS offers some compelling improvements for heavy users, I'm disappointed that Apple didn't build more innovations into the handset, to differentiate itself from the pack. Some areas are still lacking, and there's still no true multitasking (you can't log into instant messaging while surfing the Web, for example).

But the performance enhancements do distinguish this otherwise evolutionary step-up phone from its previous iterations. The new features of the 3GS are few but choice. With 32GB of storage and its data and multimedia strengths, Apple's iPhone 3GS is, despite the reservations noted, one of the best smartphones you can buy for the money.

 

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Smartphone vs. feature phone arms race heats up; which did you buy?

Smartphones such as the iPhone and the BlackBerry might get all the headlines, but most Americans continue to opt for less-expensive feature phones.

Feature phones, which are dumb phones that have elements (but not the full connectivity) of smart mobile phones, accounted for an astounding 72 percent of new handset sales in the U.S. in the second quarter, according to a new report by NPD.

Make no mistake, the tides are changing, and more Americans than ever are ponying up the dough for a real-deal smartphone (sales are up 47 percent year-over-year, to 28 percent market share). And feature phones sales slipped slightly, 5 percent.

But when it comes to which phone rules the roost, it all depends on the features.

In Q2 2009:

* The LG enV2 and Samsung Rant led feature phone sales

* The Apple iPhone 3G and RIM Blackberry Curve led smartphone sales

* Wi-Fi capability is now on 20 percent of all new handsets, a 300% increase

* Touchscreens were on 26 percent of all new handsets sold

* QWERTY keyboards were on 35 percent of all new handsets sold

The success of the feature phone rests on the ability for it to match the smartphone feature-for-feature, without attaching a pricey data plan to the device. (Hank Williams writes on his blog that it all depends on the operating system.)

When it comes to mobile devices, which did you opt for?

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Dell to Enter Smartphone Market in China

Dell plans to start selling a mobile phone in China but has not yet announced availability, it said on Monday.

Despite reports that it had introduced a new product in China, Dell said that it has only confirmed that it is working with China Mobile on a cell phone.

Dell did show off some device prototypes, but did not make any announcements about form factors or when it might introduce a phone, said Andrew Bowins, a spokesman for Dell.

The computer maker supports China Mobile's Ophone development, which is an open mobile software platform for mobile Internet, Dell said. The company declined to say which operating system its phone would use.

Past rumors have linked a Lenovo phone running Android with the Ophone name.

Dell was participating in a China Mobile event, where the operator announced its mobile application store, Bowins said.

Rumors of a new phone from Dell have been circulating all year. The computer maker once made a handheld device, the Axim PDA, but cancelled it in 2007.

Dell would not comment on whether it intends to introduce a phone in other regions beyond China. If it does, it would be entering an increasingly crowded and competitive market. The introduction of the iPhone, and subsequent challengers including the Palm Pre and Android devices, has changed customer expectations for how smartphones should look and what they should do. Still, the market for cell phones continues to grow and China is the largest cell-phone market in the world, so Dell may be hoping to capitalize on both trends.

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Traditional cell phone sales are down 6%, but the smartphone market is still growing, according to Gartner.

Worldwide cell phone sales dipped 6.1% for the second quarter, but smartphones continue to sell well, according to a report from Gartner.

The report said the global recession is affecting demand in both mature and emerging markets, but smart mobile phones are still seeing strong growth. For the second quarter, smartphones surpassed 40 million sales, a 27% increase from the same period a year ago.

Nokia (NYSE: NOK) remains the leader in smartphone sales with 45% of the market, but Gartner said its overall portfolio is still reliant on low-end devices. The company's flagship device, the N97, has not been as successful as Nokia would have liked, as Gartner said it has sold about 500,000 units since its June debut. By contrast, Apple's iPhone 3GS sold more than a million units during its launch weekend.

"The right high-end product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in average selling prices and margins," said Carolina Milanesi, research director at Gartner, in a statement.

Research In Motion (NSDQ: RIMM) claimed the second spot with 18.7% of the market, and the BlackBerry maker continues to gain market share. Once the exclusive domain of the mobile professional, BlackBerry smartphones are catching on with the casual market with devices like the Storm and Curve 8900. The company said more than 45% of its approximately 28.5 million BlackBerry subscribers are non-enterprise users.

Apple captured the third spot with 13.3% of the market, and the company's iPhone lineup continues to sell well. The iPhone 3GS was launched near the end of the second quarter, and Gartner said its impact won't be fully felt until the second half of 2009. The company could see massive sales increases if it can get the device into big new markets like China.

HTC was in fourth place, but Gartner only counted smartphones that had the HTC logo on them even though the company makes handsets for companies likeSony (NYSE: SNE) Ericsson. HTC is followed by Fujitsu in the smartphone rankings.

Overall, Nokia is selling the most cell phones, and they're followed by Samsung, LG Electronics, Motorola, and Sony Ericsson.

The increased adoption of smartphones can boost employees' productivity, but it can also lead to headaches for IT departments. InformationWeek has published a report on the best practices for managing a fleet of smartphones. Download the report (registration required).

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