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The future of the touchscreen phone is the story of dramatically growing demand. IMS Research forecasts sales of 230 million touch-screen handsets by 2012, up from 30 million in 2007.Here’s what’s happening.

First, more manufacturers getting onboard. Second, touch-screens are showing up on more types of devices, not just smartphones.

Nokia will soon launch a mass appeal touch-screen phone.

The thirst for touch-screens is strong. Samsung’s Instinct is a hit. Sprint says the Samsung Instinct is its best-selling EV-DO device ever.

LG sold seven million touch-screen devices in July.

Apple sold a million new 3G iPhones a day the first three days of release. And not surprising, it is the parade of manufacturers following Apple’s lead that is manoeuvring to tap into the touch-screen demand.

As IMS Research analyst Femi Omoni puts it..

“The original iPhone was the catalyst that created this huge market interest in touchscreen phones. The fact that it was not only popular with consumers, but also helped drive data revenues proved how important touchscreen handsets can be. Now all of the network operators and handset manufacturers want a piece of the pie.”