Nokia, the world's leader in mobile phones for over 10 years, has been beaten by Korea's Samsung to become the preferred mobile phone for 2012.

According to preliminary forecast by market research firm IHS iSuppli, Samsung has been forecast to account for 29 per cent of the world's total volume of cellphone shipments in 2012, a jump of 24 per cent over last year, while Nokia from Finland will account for only 24 per cent, a drop from the 30 per cent registered in 2011.

"The competitive reality of the cellphone market in 2012 was 'live by the smartphone; die by the smartphone,'" Wayne Lam, senior analyst for wireless communications at HIS, said.

This will be the first time that the South Korean electronics titan will occupy the top on a yearly basis. Nokia, on the other hand, will fall to the runner-up spot, also a first since 1998.

"Smartphones represent the fastest-growing segment of the cellphone market-and will account for nearly half of all wireless handset shipments for all of 2012. Samsung's successes and Nokia's struggles in the cellphone market this year were determined entirely by the two companies' divergent fortunes in the smartphone sector."

IHS iSuppli explained Samsung's success was built on its "fast follower" strategy for design and manufacturing. The company produces dozens of new smartphone models every year that address all segments of the market, from the high-end to the low-end.

"Samsung monitors the big trends in smartphone design, user needs and unmet market opportunities, then creates products to fit those markets quickly and efficiently," the research firm said in a statement.

Surprisingly, Samsung likewise surged ahead of Apple, which will land on the third spot in 2012.

IHS iSuppli said global smartphone shipments are forecast to jump as much as 35.5 per cent this year alone, with overall cellphone shipments to surge approximately 1 per cent, effectively registering this year's smartphone penetration to 47 per cent, up from 35 per cent in 2011.