But then, handset vendors will attempt to come up with an iPhone 'killer' in the consumer segment. iPhone would face the heat with competitors such as Nokia N95, N96, Samsung's Instinct and Touch Diamond from HTC.

Besides, Nokia has said it will start selling a touch-sensitive handset by the year-end. The device, reportedly code-named Tube, promises a new challenge to Apple. But then, argue experts, Apple's sales come more from a fan following.

Image: A woman uses the navigate tool on the Nokia N82 cell phone with an internal GPS receiver and Nokia map, at the CeBIT technology fair the first day the fair opened to the public on March 4, 2008 in Hanover, Germany. | Photograph: Andreas Rentz/Getty Images.