Samsung Sings of Handset Strength

Analysts say Nokia's strength in Europe and Motorola's continued leadership in popular designs, combined with the advent of the $40 phone in new markets like South Asia, Africa and Latin America, will help the top two players maintain their dominance.

But Samsung says it expects to see some signs this quarter that it is cutting into the higher-tier price range with greater sales of third-generation or 3G phones. And by early next year, the company will have its own version of super-thin handsets aimed at competing with Motorola's successful Razr phone.

Nokia shares were up a dime to $16.91 and Motorola was up 35 cents to $20.26 in late-morning trading Friday. Wireless-chip maker and tech-license giant Qualcomm (QCOM Quote) was also up on the Samsung strength. Qualcomm shares rose 54 cents to $42.24.