Espoo, Finland-based mobile phone maker Nokia is the largest handset vendor in the world, and is also the leading maker of dual-mode Wi-Fi handhelds. However, it seems that its market share in the Wi-Fi segment has shrunken when compared to the last year, according to a recent report from In-Stat. While in Q2 2008, the company accounted for 50 percent of the market, in Q2 2009, it saw a decline of over 10 share points, in favor of devices from Apple and RIM.

According to In-Stat, the shipments of Wi-Fi-enabled mobile phones have increased significantly in the past several years. The research firm says that the shipments registered a growth of more than 50 percent from 2007 to 2008, due to enhancements to the phones' functionality and to lower price tags, as well as courtesy of carrier promotions.

“While the enterprise was the original smartphone/Wi-Fi handset market, Apple’s iPhone has propelled consumer adoption,” states Victoria Fodale, In-Stat analyst. “Wi-Fi’s popularity as a compatible cellular technology is tied to its ability to improve the user experience and also help maintain the quality of the cellular network. A Wi-Fi-enabled cell phone allows for free access to data, and it improves performance.”

The In-Stat report also shows that the Wi-Fi/cellular handsets are influencing hotspot usage. As many of you might already know, AT&T announced not too long ago that smartphones and other integrated devices accounted for 60 percent of the Wi-Fi connections made on its network during the third quarter of the year, which is a clear indicator of how things are.

Other findings of the report include facts like:
- The potential for voice over Wi-Fi is gaining popularity, as cellular/Wi-Fi phones become more pervasive and consumer familiarity with VoIP increases.
- The Wi-Fi attach rate (percent of handsets with embedded Wi-Fi) will more than double over the next two years.
- There were 121 models of cellular/Wi-Fi handsets introduced in the first half of 2009, almost as many as were introduced in all of 2008.

In-Stat's research, dubbed “Wi-Fi in Mobile Phones: Dual Mode Becomes the In Thing,” can be found on the firm's website.