STAMFORD, CT – Cellphone sales leapt above one billion last year, according research firm Gartner Inc.

Globally, more than 1.15 billion mobile phones were sold, up 16% over 2006, the firm said.

While developing nations helped improve sales dramatically, replacement phones with special features helped drive sales in the developed world.

"Emerging markets, especially China and India, provided much of the growth, as many people bought their first phone," said Carolina Milanesi, research director for mobile devices at Gartner. "In mature markets, such as Japan and Western Europe, consumers' appetite for feature-laden phones was met with new models packed with TV tuners, global positioning satellite functions, touch screens and high-resolution cameras."

Leading the market was Nokia, with 40% of the market share and sales of about 435 million phones in the fourth quarter.

Motorola, on the other hand, slipped in the market last year, landing in third place.

LG, Samsung and Sony Ericsson gained market share.

Gartner expects handset sales to decline slightly this year, with sales growing only 10%. Most new growth will come from the developing market, while North America and Western Europe will slow. The two are expected to account for about 30% of global sales.

Gartner raises important questions for 2008: Will Nokia maintain its momentum? To do so, Gartner believes it will need to infiltrate North America, a location Nokia has not had much success in, says the firm.

What will happen to Motorola? The company doesn’t expect any big shifts in its cellphone business this year, and may be considering whether or not to sell its handset sector.

Gartner says significant new players in the handset market include China-based ZTE, Research In Motion and Apple.