HTC did not provide unit shipment figures for the Touch Diamond. But officials did say that while the global credit crunch has impacted consumer sentiment, smartphones appear to be shielded for now because of their growing popularity.

One of HTC's hottest new products this year, the G1, was launched in September. The first-ever smartphone with Google's Android OS, T-Mobile USA, Google and HTC jointly announced the G1 at a ceremony in New York, and set its price about $20 cheaper than the iPhone 3G. HTC had nicknamed the handset "Dream."

The new Android OS is making waves among Taiwanese phone makers. Asustek Computer announced plans to release an Android-based mobile phone early next year, and a few other companies are believed to be working on similar devices.

The entry of Android into the handset market has prompted rival OS makers to lower licensing fees in order to compete, the Market Intelligence Center said. The researcher predicts that people everywhere will benefit by lower prices.

Smartphones aren't the only hot products still selling well, but they do highlight a trend to mobile computing.