Smartphone sales last quarter rose 12.8 percent from last year while the overall mobile phone sector remained flat, providing proof that the high-end handsets continue to be the crown jewel of the wireless space even as they face new challenges.

Worldwide mobile phone sales checked in at close to 309 million for Q3, a mere 0.1 gain from the same period last year, although smartphones topped 41 million, a gain of almost 13 percent from Q3 2008, according to research firm Gartner.

This year marked a seminal stage for the smartphone sector as key players rallied with major refreshes to their operating systems while simultaneously releasing new flagship handsets.

Still, the smartphone portion of the market is facing some obstacles, including lower average selling prices as the devices proliferate, and fragmentation in the marketplace due to new models and platforms like Google's (NASDAQ: GOOG) Android and Palm's (NASDAQ: PALM) webOS.

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