The report by the research firm Gartner found smartphone sales totaled 225 million in the second quarter, or 51.8 per cent of all mobile phones sold in the period.
It was the first time smartphone sales exceeded those of feature phones, which are more basic phones with limited or no access to the Internet and applications.
The survey found Samsung remained the leading vendor of smartphones and all mobile phones, and that the Google Android system solidified its position with a 79 per cent share of smartphones sold.
"While Microsoft has managed to increase share and volume in the quarter, Microsoft should continue to focus on growing interest from app developers to help grow its appeal among users," said Anshul Gupta, a Gartner analyst.
More From This Section
Apple's iOS, the operating system for the iPhone, remained second with a 14.2 per cent share, down from 18.8 per cent a year earlier.
Gartner said Apple's average prices dropped because many of its phones sold were older, discounted models of the iPhone. This "demonstrates the need for a new flagship model," Gupta said, but added that "it is risky for Apple to introduce a new lower-priced model too."
Samsung was also the top seller of all mobile phones, with a total of 107 million in the period, or 24.7 per cent. Finland-based Nokia was second with a market share of 14 per cent and 60.9 million phones sold, Gartner said.