Despite a slumping economy and rapidly approaching market saturation, mobile phone shipments in the United States grew in the second quarter of 2008, according to research firm Strategy Analytics.

Mobile phone shipments in the U.S. grew 5.3 percent in the last year to reach 41.9 million in the second quarter from 39.8 million in Q2 2007.

Much of the growth was driven by the launch of phones with innovative features such as touch-screen and music capabilities along with price cuts and more attractive contract terms. The Samsung Instinct, which sold for $129, and the Palm Centro, which sold for $99, were the standouts in the quarter.

Canadian handset maker RIM moved into double digits as its flagship Blackberry doubled its U.S. market share, vaulting from 4.8 percent in the second quarter of 2007 to 10.6 percent in the 2008 period.

“Blackberry's success is particularly remarkable in this a very competitive market,” said Bonny Joy, an analyst with Strategy Analytics. “One of every 10 phones sold in the U.S. in the quarter was a Blackberry.”

Blackberry devices are generally sold with data plans which allow carriers to derive higher per-user revenue. Blackberry devices, like the iPhone, are also instrumental in promoting the use of the mobile web.

“We see Blackberry as dominating the mobile web space so while it does not have the market share in handset distribution, it is by far the leading brand in the mobile web,” said Andy Sullivan, vice president of client services for Crisp Wireless, a New York City based firm that hosts mobile businesses for traditional media companies.

Despite losing a lot of ground Motorola hung on to the top spot in the U.S. Its market share was 25.8 percent, down from 36.6 percent in the second quarter 2007. The Schaumburg, Illinois-based firm's close ties to U.S. carriers kept it from falling into second place.

LG secured the second position with 21 percent market share in the quarter. Samsung was third with 18.6 percent share, with RIM fourth and global market leader Nokia in the fifth spot with 9.5 percent.

With the U.S. market approaching saturation, 90 percent of the phones sold in the second quarter were replacements, according to Mr. Joy.

“To invoke that replacement dynamic carriers are subsidizing not just the same handset at lower prices but new and upgraded phones with innovative features like touch screen and music at lower prices,” he said.