Dow Jones NEWSWIRES

World-wide shipments of mobile phones declined 1.5% during the first quarter, while the smartphone market grew 42% from a year earlier, according to market-researcher International Data Corp.

The firm said vendors shipped 398.4 million mobile phones in the most recent quarter, down from 404.3 million units a year ago.

Samsung Electronics Co. Ltd. (SSNHY, 005930.SE) became the world's top mobile phone vendor, ousting longtime leader Nokia Corp. (NOK, NOK1V.HE), who had been the global leader in total mobile-phone shipments since the inception of IDC's Mobile Phone Tracker in 2004.

The firm attributed Samsung's ascension to its gains in the smartphone market over the past two years.

Meanwhile, first-quarter world-wide smartphone shipments grew to 144.9 million units from 101.7 million smartphones a year earlier.

Samsung reclaimed the smartphone leadership position by tripling its market share to 29.1%, reflecting the expansion of its Galaxy portfolio. Apple Inc. (AAPL) slipped to the No. 2 slot, though its smartphone market share improved to 24.2% from 18.3% a year ago.

"With other companies in the midst of major strategic transitions, the contest between Apple and Samsung will bear close observation as hotly anticipated new models are launched," said Ramon Llamas, senior research analyst with IDC's mobile phone technology and trends program.

-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com