Motorola may be running low on mobile sales mojo, but its Razr has had quite a run. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:of... />

The cool factor still counts when it comes to cell phones. Motorola’s Razr, with its sleek handset style, topped the list of most popular phones among <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:sm... />U.S. customers in 2006, according to a ranking compiled by the NPD Group, a Port Washington, New York-based research firm.

That’s not to say Motorola has had it easy (see Motorola Misses the Call). Worldwide, Finnish manufacturer Nokia is the dominant player in cell phones, with over 35 percent of the market, according to Gartner Research. Not only does it dominate in Europe, but its wide selection of low-cost phones are selling well in emerging markets such as India and China, according to analysts.

Worldwide mobile phone sales totaled 251 million units in the third quarter of 2006, a 21.5 percent increase from the same period last year, according to Gartner. Yet, the increasing popularity of less expensive phones, particularly in India, has meant slower revenue growth for some cell phone makers. (See: Cheap Phones Hurting Vendors.)

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In the U.S., where slightly more expensive, or mid-tier cell phones are favored, Nokia is ranked behind Motorola and LG of Korea. LG has four models on the top ten list, all of them mid- or high-tier phones with such capabilities as V-Cast music support, digital video and still cameras, and Bluetooth.

The top 10 cell phones, by sales, in U.S. for 2006 were as follows:

1. Motorola Razr

2. LG VX5200

3. LG C2000

4. Nokia 6010

5. Nokia 1100

6. Motorola E815

7. LG VX8300

8. Samsung SGHX495

9. LG VX8100

10. Nokia 6030

Source: The NPD Group

Its heavily hyped VX-8500 Chocolate did not make the top ten list—most likely because it’s expensive. And while LG phones are popular in the U.S. and much of Asia, the company has a relatively small market position in worldwide cell phone sales, holding onto just 6 percent. In comparison, fellow Korean manufacturer Samsung has twice its market position in the cell phone market.

“Motorola and Nokia … have a huge variety of entry-level tier phones. They have kind of a foothold in that area,” said Keith Carpenter, a U.S. spokesman for LG, who said adding to the lower-tier mix will be a priority for LG in the coming year.

The biggest loser in the U.S. market among the top cell phone manufacturers was Sony Ericsson, which had no phones on the top ten list. Worldwide, however, Gartner research estimates that its market share has grown a percentage point, from 6.7 percent in the third quarter of 2005, up to 7.7 percent in the same period in 2006.

In short, what gets chosen in the U.S. doesn’t necessarily reflect the rest of the world.

Market Share Breakdown, Worldwide Mobile Device Sales