Vodafone now claims in excess of 30 million smartphone subscribers in Europe, and this number looks set to expand, particularly after the recent addition of Apple's iPhone to its portfolio.
In the UK, declining services sales in Q3 were offset somewhat by the launch of new products and indirect distribution channels, supported by growth in sales of messaging and mobile internet bundles. However continuing falls in voice revenues effectively wiped out those gains.
In an interim management statement published today, the UK-based mobility provider said total revenues for the three months were up 10.3% year-on-year to £11.5bn while group service revenue increased by 11% to £10.7bn.
"Service revenue trends have improved with continuing growth in our data and fixed-line revenue. Free cash flow guidance has been raised reflecting the impact of our cost and working capital reduction programmes," said Vodafone chief executive Vittorio Colao.
"We are on track to deliver on our strategic priorities in the current financial year," he added.
Vodafone is now targeting adjusted full-year operating profit of around £11.6bn. Its fiscal 2010 ends on 31 March.