According to Juniper Research, the iPhone impacted on the market in a "remarkable" way and brought smartphones into the consumer segment from their position as a business-only gadget.
Principal analyst Windsor Holden said other manufacturers have followed Apple’s example and incorporated touchscreen features and functionality to their latest products.
"That’s one side of things," he added. "The other is the App Store itself, which has completely revolutionised the way that consumers use applications."
Apple’s pick of the week in the iPhone store at the moment is Rolando – a game requiring the user to tap and tilt their way through puzzles. There are 36 levels and a soundtrack from Mr Scruff.
Other top picks include Photogene, which is used to edit digital photos and PocketGuitar, an app that turns the handset into a virtual version of the stringed instrument.
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