Number of smartphones tops one billion Strategy Analytics, the consulting firm which conducted the research, said that growing demand for the internet-connected mobile devices was likely to push the number north of 2bn within the next three years. The first smartphone was launched in 1996, by Nokia, but although the devices were adopted by a small number of technophiles, the market did not explode until Apple produced its iPhone 11 years later. "The iPhone revolutionised smartphone design and it catalysed industry growth," said Scott Bicheno, an analyst at Strategy. By the third quarter of 2011, we estimate there were 708m smartphones in use worldwide. After a further year of soaring demand, the number of smartphones in use worldwide reached 1,038bn units. Since the iPhone made its debut, the market for smartphones has become a fierce battleground, with Apple and Samsung both warring for control. Their surge in popularity has also been the undoing of many major companies. Nokia, which for a long time was the biggest mobile manufacturer in the world, has seen its value plummet because it was too slow to come up with a sufficiently attractive smartphone that could compete with Apple and Samsung's creations. There is still an enormous potential market to be had, particularly in the developing world where so-called "feature phones," devices which can be used to text and call but do not have internet access, dominate. "Smartphone penetration is still relatively low," said Strategy Analytics Executive Director Neil Mawston.. Most of the world does not yet own a smartphone and there remains huge scope for future growth, particularly in emerging markets such as China, India and Africa, The number of mobiles in usage is expected to hit 10bn by 2016, even more than the 7.3bn people predicted to be living on the planet at that time.