The U.S. mobile handset market appears to be in robust health. According to a report by NPD Group, 38 million mobile handsets were sold in the US in the third quarter of 2007, representing 16 percent growth on the previous quarter. These sales generated revenues of US$3.2 billion, an increase of 47 percent on the same time last year. Smartphones accounted for 11 percent of all handsets sold during this period, up from 4 percent the previous year. Motorola was able to capture 31 percent of the U.S. market during the quarter, with LG and Samsung accounting for 17 percent and 16 percent of sales respectively. Sales of Nokia handsets accounted for 11 percent of U.S. sales during this quarter.
The launch of the iPhone in June is believed to a catalyst for this increase, with U.S. consumers taking a renewed interest in phones with music playing capabilities. Half of the 38 million phones sold during the third quarter came with built-in music players, double the previous year.