New research shows that U.S. customers spent 40 percent more for handsets last quarter versus the year-ago period, with expensive handsets such as the Apple iPhone and BlackBerry making up 11 percent of phone sales.

Shoppers spent $3.2 billion on phones, or $83 each, up from $2.2 billion a year earlier, according to market researcher NPD Group. BlackBerry smartphones can cost as much as $300. The iPhone, which is also an MP3 player, cost up to $599 when it went on sale in June and now sells for $399. Apple shipped 1.4 million iPhones in the first three months.

"It shows that more consumers are excited about doing more with their phones than simply talking," said Neil Strother, mobile analyst at JupiterResearch, New York.

"Browsing the Web, checking email, downloading and listening to digital music -- these are all much easier on phones like the iPhone or BlackBerry devices like the Pearl and Curve," he said.

The increased sales of high-end multimedia devices will enable marketers to reach more consumers with relevant messages, either while people browse, engage with music or when they search for information from their phones, Mr. Strother said.

His fellow analyst at JupiterResearch agreed.

"Generally, people will view more pages [or] browse more if the experience is good, meaning faster page loading and ease of use," said Julie Ask, vice president and analyst at JupiterResearch.

"Consumption of media/Web sites/browsing is significantly higher for those with a fast connection [and] large color screen," she said. "More page views equals more inventory. However, the right infrastructure has to be in place to serve mobile ads in order for this to work in terms of generating more mobile ad revenue."

IPhone Safari vs. Windows Mobile
Though both devices have their strengths and weaknesses, the iPhone's operating system -- an adaptation of Mac OS -- is the clear winner for mobile Internet browsing, Ms. Ask said. In fact, when comparing it to the Windows Mobile OS, some analysts make an analogy of broadband versus dialup.

The iPhone is already being used by 50 percent more people to browse the Internet than all the phones running the Windows Mobile operating system.

According to data from Net Applications, a company that compiles data by monitoring sites that attract about 160 million monthly visitors, the iPhone has showed up on its monthly market share reports since July, where it debuted at 0.04 percent. Since the iPhone's introduction, Windows Mobile had held steady at November's 0.06 percent.

The iPhone does have some shortcomings. It lacks a 3G version and GPS services. But Apple has indicated including those offerings in 2008 versions.

"A 3G iPhone will just increase the use of mobile Web access and with GPS could help drive more location-based services," Mr. Strother said. "Though, with much of the current iPhone access is over Wi-Fi, I'm not sure the move to 3G alone will move the needle a great deal, given the wide availability already of Wi-Fi hotspots. But it will help when people are out of coverage."