Touchscreen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touchfocused midtier devices.

However, the decline in average selling price ASP accelerated in the first half of the year and particularly affected manufacturers that focus on midtier and lowend devices, where margins are already slim.Nokia landed in the stop spot, but its portfolio remained heavily skewed toward lowend devices. Its N97 smartphone has sold 500,000 since launching in June compared to Apples iPhone 3G S, which sold 1 million units in its first weekend.The right highend product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in ASPs and margins, said Ms Milanesi.