"The robust growth in converged device shipments in 2006 was driven by substantially decreased price points and a greater selection of devices for consumers to chose from," said Ryan Reith, research analyst for IDC's Worldwide Mobile Phone Tracker. "Competitive pressures have driven price points below $200, making converged mobile devices more affordable to a broader base of users. More than ever before, vendors are focused on providing greater capabilities that differentiate their products while keeping costs in check."

The variety of functionalities "packed" into a converged mobile device these days is remarkable. "It's not uncommon for a converged mobile device these days to pack multiple features inside, including an embedded camera, MP3 player, GPS capability, and an expandable memory card slot," said Ramon Llamas, research analyst with IDC's Mobile Device Technology and Trends team. "As a result, the converged mobile device, once chiefly associated with enterprise usage, continues to find growth outside of the enterprise with the emerging 'prosumer' market segment."

Looking ahead, IDC maintains a positive outlook for converged mobile devices. "Lower prices and costs, coupled with raised interest among users, are a boon to nearly any market, and this one is no different. The key is to watch which vendors are taking which strategic steps in which regions in order to realize market share and profitability," added Llamas.

Nokia ended 2006 much the same way it began the year  as the undisputed leader in the industry. Research In Motion, whose BlackBerry devices have long been associated with enterprise mobility, took second place for both the quarter and the year. Motorola improved its position to third as one of the worldwide leaders of converged mobile devices in 2006, thanks in large part to the success of its A1200 MING in China and the MotoQ in North America. Fourth-place Sharp was a relative newcomer to the converged mobile device space at the end of 2005, but has since released a new device each quarter in Japan. Panasonic finished the quarter as the number five vendor worldwide, but was the only vendor among the top five to post negative year on year growth.