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Video Angry Birds maker eyes IPO Zynga's Mark Pincus Luluvise launches ladies-only networking Cat litter - the latest weapon in crime fighting Follow Reuters Facebook Twitter RSS YouTube Read Senate passes payroll tax cut and spending bill 4:38pm EST Rapper shot to death in Atlanta 4:15pm EST South Carolina has first human rabies case in 50 years 16 Dec 2011 Special report: the billionaire from Brazil | 9:11am EST Time short for S&P to end 2011 higher 12:00pm EST Discussed 249 Ron Paul gains ground, further stirring Republicans 135 Insight: The day Europe lost patience with Britain 126 Ron Paul strongly defends anti-war policies Watched Philippines counts storm dead 3:13am EST 'Barefoot Bandit' brought to book Fri, Dec 16 2011 Dozens die in Philippines storm 2:10am EST Galaxy and iPhone to top smartphone holiday sales Tweet Share this Email Print Related News BlackBerry delay darkens RIM's future Fri, Dec 16 2011 RIM investors fear more bad news on QNX Wed, Dec 14 2011 UPDATE 2-HTC sues Citi in Taiwan after share price fall Tue, Dec 13 2011 Panasonic eyes fresh tilt at global phone market Fri, Dec 9 2011 HTC says no plan to change Q4 guidance yet Wed, Dec 7 2011 Analysis & Opinion Tech wrap: Will switch to QNX save RIM? Paraphrasing Hayek Related Topics Tech » Media » Models pose with the Galaxy Nexus, the first smartphone to feature Android 4.0 Ice Cream Sandwich and a HD Super AMOLED display, during a news conference in Hong Kong October 19, 2011. Credit: Reuters/Bobby Yip By Tarmo Virki HELSINKI | Fri Dec 16, 2011 8:11am EST HELSINKI (Reuters) - Apple's long-awaited iPhone 4S and Samsung Electronics' fresh, broad offering are likely to stand out in this holiday season's smartphone sales which will otherwise be clouded by global economic uncertainty. Apple, which lost its position as the world's largest smartphone maker to Samsung last quarter, could regain top spot as consumers rush to buy the latest iPhone after waiting 16 months since the previous model went on sale. Like millions elsewhere, 36-year-old Vanessa Pigeon last week took up an offer from her telecom operator and replaced her aging Blackberry with the latest iPhone. "I liked the design and I wanted to change for a long time," said Pigeon, a recruitment official in Paris. In neighboring Britain, which is often seen as the indicator for the rest of the European market, the iPhone took a whopping 43 percent market share in October, overtaking phones using Google Inc's Android platform, according to research firm Kantar Worldpanel ComTech. "It's really only the iPhone family and the (Samsung) Galaxy family flying off the shelves. Everyone else is just picking up the leftovers," said Neil Mawston, analyst at research firm Strategy Analytics in Milton Keynes, Britain. HTC and Research In Motion -- No.4 and No.5 smartphone vendors -- have already warned of weak holiday sales. The year end is a key sales season for smartphone vendors as consumers often replace their models for the holidays. Vendors are expected to sell a total of 142 million smartphones in October-December, up 42 percent from a year ago, according to a Reuters poll of analysts. NO SANTA? "At this moment we're still doubtful on whether we'll see any seasonality this Christmas because the demand we see so far is very bad," said Bonnie Chang, analyst at Yuanta Securities in Taipei. Overall phone sales have been shrinking in western Europe this year as consumers delay purchases in a tighter economy. Analysts expect sales of non-smartphones to stay on a par with year-ago numbers. Smartphone sales growth, which is driven by swapping for more advanced models, has slowed over the year. "For Europe, Q4 will not be the usual bonanza. The economy is pushing consumers to be pickier," said Gartner analyst Carolina Milanesi, adding this played to the advantage of Samsung and Apple. Sales of Apple's iPhone have surged since early October when the iPhone 4S model became available, and the company is expected to sell around 28 million iPhones in the quarter, a 70 percent surge from a year ago. Samsung's handset sales this year broke a new annual record by the end of November, boosted by good demand for its flagship Galaxy S II model, whose sales reached 10 million units, the company said a week ago. The Reuters poll does not break out Samsung smartphone sales as the firm does not report the number, but five analysts forecast those sales should be similar to that of Apple. Sales of Nokia products will also be closely watched in the quarter for first reactions to its Windows Phone models, although most Nokia smartphones are still powered by its own ageing Symbian software. "I don't think Nokia joining the force can make a difference," said Yuanta Securities' Chang, noting that HTC and Samsung models using latest Windows Phone software have not fared well. Analysts expect Nokia's smartphones sales in the fourth quarter to fall 31 percent from a year ago to 19 million phones as the new Windows Phones will not yet compensate for diving Symbian sales. Still, that would be well ahead of HTC's 11 million and RIM's 14 million. BLACK PLATES WITH BIG SCREENS With the proliferation of touchscreens and half of all smartphones sold using Google's Android operating system, consumers are struggling to see the difference among the models. "Everybody is just buying black plates with big screens," said Strategy Analytics' Mawston. Most top models also have 8 megapixel cameras among other similar features. "If you look at the phones there is nothing particular really there," said Canalyst analyst Pete Cunningham. "It's a really tough market and it is going to get tougher." Chinese vendors ZTE and Huawei have started to win market share with their cheap smartphones using Android, and cut-price competition is set to continue with chipset supplier Spreadtrum unveiling last week a platform for $40 Android phones. And the market seems to only be getting more crowded. Last week, Japan's Panasonic Corp said it would return to the European smartphone business next year, six years after it abandoned overseas sales of feature phones. (Additional reporting by Alice Cannet in Paris and Clare Jim in Taipei, Editing by Mark Potter) Tech Media Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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