In 2007, as in 2006, Asia-Pacific registered the biggest volume for converged device shipments--all smart phones and wireless handhelds--said analyst firm Canalys.

Nokia continues to lead in the region, with more than 50 percent share in converged devices, ahead of Japanese smart phone vendors Sharp and Fujitsu, the firm noted.

On the downside, Motorola, despite enjoying fourth place, has seen its Linux-based smart phone shipments in the region fall 28 percent from 2006, said the analyst firm.

Though Apple has not yet launched the iPhone in the region, many vendors who are successful in other parts of the world, such as RIM and Palm, have also made relatively little impact there so far in the region, the report by Canalys said.

Commenting on Apple's entry into this market in 2007 with the iPhone, Pete Cunningham, Canalys senior analyst, said: "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."

Worldwide, the latest market data from Canalys shows that the converged device market has grown over the past year. These devices represented around 10 percent of the global mobile phone market by units in 2007, with an annual growth of 60 percent.

This year, Cunningham predicts that there will be more activity in the market "as other smart phone vendors try to catch up and then get back in front", he said.

"Experience shows that a vendor with only one smart phone design, no matter how good that design is, will soon struggle. A broad, continually refreshed portfolio is needed to retain and grow share in this dynamic market. This race is a marathon, but you pretty much have to sprint every lap," Cunningham added.