Apple, Android Ride Smartphone Surge

NEW YORK (TheStreet) -- A pair of new reports shows strong demand for smartphones and a heated five-way race among mobile phone software shops.

Nielsen's survey of U.S. phone owners, released Tuesday, showed that nearly 30% of wireless customers have purchased smartphones.

Thanks to strong sales of Apple's(AAPL) iPhone and Google(GOOG) Android phones worldwide, third-quarter smartphone sales rose 9% over second-quarter levels, according to a Morgan Stanley tally also released Tuesday.

With Apple and Android on the rise and smartphone leaders Nokia(NOK) and Research In Motion(RIMM) fading, Morgan Stanley predicts big changes to the industry market share pie with Microsoft's(MSFT) Windows Phone 7 entering the arena.

Citing the strong smartphone sales surge, Morgan Stanley increased its 2010 global phone sales growth estimate to 12% from the firm's 9.5% forecast previously.

Here are the rankings:

In the U.S., Nielsen says third-quarter market share is a three-way race. Apple and RIM's BlackBerries are tied for first with 27% of the market, Android is closing in with 22%.

Worldwide, in smartphone market share, Nokia still tops with 32.4%, Apple moved to second with 17.2%, RIM has 14.8%, Samsung has 10.4%, HTC has 8.3% and Motorola(MOT) came in fifth with 4.6%.

--Written by Scott Moritz in New York.

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