Apple has become the world’s third largest smartphone supplier, despite offering its single iPhone product in just four countries so far. New research from the analysts at Canalsys predicts the smartphone market reached 118 million units in 2007, up 53 percent on 2006.

The 2,320,840 iPhones Apple shipped in the fourth quarter of 2007 equates to 6.5 percent of the smartphone market in that quarter, edging Apple above Motorola (2,301,260 shipments), in third place behind Research In Motion and Nokia.

“When you consider that it launched part way through the year, with limited operator and country coverage, and essentially just one product, Apple has shown very clearly that it can make a difference and has sent a wake-up call to the market leaders,” said Pete Cunningham, Canalys senior analyst.

“What it must demonstrate now is that it can build a sustainable business in the converged device space, expanding its coverage and product portfolio. It will also need to ensure that the exclusive relationships that got it so far so quickly do not prove to be a limit on what it can achieve. Apple’s innovation in its mobile phone user interface has prompted a lot of design activity among competitors. We saw the beginnings of that in 2007, but we will see a lot more in 2008 as other smartphone vendors try to catch up and then get back in front.”

Read the complete article at PCWorld.com