Demand for Motorola Razr phone have peaked, according to analysts, allowing Sony Ericsson to capture the crown as the worlds fastest growing and most profitable vendor for the first time in over a year.

Market research firm Strategy Analytics released a report on Thursday indicating an all-time record of 256 million mobile phones were shipped in the 3rd quarter of 2006, with Sony Ericsson growing at 43 percent annually, compared with 39 percent from Motorola. Strong demand for the Walkman and CyberShot ranges helped the mobile manufacturer reach first place, the firm said.

Motorola shipped 54 million units in the third quarter, however, maintaining its grasp of the mobile sector, garnering 21 percent market share, followed by Samsung with 31 million units (12 percent), Sony Ericsson 20 million units (7.7 percent) and LG 16.5 million phones (6.4 percent).

Following 716 million units shipped worldwide in the first 9 months, up 25 percent on the same period last year, Strategy Analytics still maintains its forecast that over 1 billion phones will be shipped this year.