Over the next year, the three may struggle as other handset makers begin producing competitively priced and attractive 3G devices. Neil Mawston, director at Strategy Analytics, said: “The smartphone market will become ultra competitive in 2010. Samsung and LG (SEO: 066570) have ambitious plans to grow volumes and expand their app stores, while emerging players like Dell and Huawei are strengthening their device portfolios and courting major operators.”

The competition will likely lead to price wars. Evidence of that may already be surfacing. Reuters reports today that Nokia cut phone prices across its portfolio in late January, putting its cheapest smartphones in line with mid-range devices from Samsung and Sony (NYSE: SNE) Ericsson (NSDQ: ERIC). For instance, Nokia’s cheapest smartphone is the 5230, which now retails for around 170 euros ($239) in Finland. The model’s wholesale price is now below 120 euros. Several industry sources told Reuters (NYSE: TRI) that the price cuts added up to about a 10 percent chop.