Apple also edged out Microsoft in smartphone OSs, the report said.

A record high 39.9 million smartphones were shipped globally in the July through September period, up 28 percent over the same time last year, according to Canalys. Smartphones now represent 13 percent of the total mobile handset market, up from 11 percent in the second quarter.

The devices, which combine computing functions of a personal digital assistant (PDA) with a mobile phone, have gained popularity as companies offer new functions, such as on board cameras, music players, touchscreens and speedier Web browsing.

Nokia retained its lead in smartphones but lost significant market share during the quarter due to heavy competition from Apple and third place RIM. The Finnish company shipped 15.5 million smartphones in that period, down slightly from last year as its market share fell to 38.9 percent from 51.4 percent.

Apple shipped 6.9 million smartphones, up from just 1.1 million the same time last year. That was enough for a market share of 17.3 percent, compared to 3.6 percent last year.