Worldwide sales of mobile phones to end users were flat in the third quarter of 2014, according to Gartner. However, sales of smartphones to end users grew 20.3% to reach 301 million units.

"Sales of feature phones declined 25% in the third quarter of 2014 because the difference in price between feature phones and low-cost Android smartphones is reducing further," said Roberta Cozza, research director at Gartner. In the third quarter of 2014, smartphones accounted for 66% of the total mobile phone market, and Gartner estimates that by 2018, nine out of 10 phones will be smartphones.

From a regional perspective, emerging markets exhibited some of the highest growths ever recorded with Eastern Europe and the Middle East and Africa achieving the highest increase in the third quarter of 2014, with sales of smartphones growing almost 50% year-over-year. Among the mature markets, the US achieved the highest growth, with an 18.9% increase in the third quarter of 2014, fostered by the launch of the iPhones 6 and 6 Plus. Western Europe saw a decline of 5.2%, the third consecutive decline this year.

"Over the holidays we expect record sales of the iPhone 6 and iPhone 6 Plus, but we should not underestimate the Chinese vendors and local brands," said Annette Zimmermann, research director at Gartner.

"Chinese players will continue to look at expanding in overseas emerging markets. In Europe prepaid country markets and attractive lost-cost LTE phones will also offer key opportunities for these brands." Gartner expects sales of smartphones to reach 1.2 billion units in 2014.