Digital wireless telephones continue to gain a greater share of the U.S. mobile market.

Digital handsets accounted for 77.8 percent of all U.S. mobile handset sales in the second quarter of 1999, while analog handsets totaled 22.2 percent of sales, according to Dataquest Inc., a unit of Gartner Group Inc. At the end of 1998, digital models had a 60 percent market share.

Dataquest analysts said handsets featuring code-division multiple access technology, or CDMA, are an increasing contributor to the strong growth of digital mobile telephony in the United States. CDMA held 47 percent of digital sales, up from 38 percent at the end of 1998. Phones using the second most popular standard--time-division multiple access, or TDMA--slipped from 46 percent of the market at the end of 1998 to 39 percent in the second quarter of 1999.

Nokia, which leads in overall sales, has been prevented from "completely running away with the U.S. market" because it lacks a strong presence in CDMA, said Bryan Prohm, a Dataquest analyst.

"Motorola's successful CDMA portfolio has helped it capture the No. 2 position in the overall U.S. mobile handset market," Prohm said. Ericsson, which did not offer a CDMA product, "slipped to the No. 5 position," he said.

THE MOBILE HANDSET MARKET

Nokia leads in overall U.S. sales* of mobile handsets, followed by Motorola.

Nokia: 31.7%

Motorola: 22.4

Qualcomm: 12.2

Audiovox: 10.3

Ericsson: 10.2

Others: 13.2

* Estimates ranked by unit sales for the second quarter of this year

SOURCE: Dataquest