Apple iPhone tops US handset sales

The iPhone is now the biggest selling handset in the US

After nearly three years as the top ranking US handset Motorola’s RAZR has been eclipsed by Apple’s iPhone.

Analyst firm NPD reported that the iPhone outsold the RAZR in the third quarter of the year primarily because of its internet facilities.

"The displacement of the RAZR by the iPhone 3G represents a watershed shift in handset design from fashion to fashionable functionality," said Ross Rubin, director of industry analysis for NPD.

"Four of the five best-selling handsets in the third quarter were optimised for messaging and other advanced internet features."

According to NPD, the top five phones for the third quarter of 2008 are Apple iPhone 3G, Motorola RAZR V3 (all models), RIM Blackberry Curve (all models), LG Rumor and LG enV2.

However, the analyst group reported that overall phone sales have been disappointing in comparison with last year. Sales fell by 15 per cent to 32 million, and revenue fell 10 per cent to $2.9bn even though the average selling price per handset rose six per cent.

Rubin thinks that part of the drop is down to voice-only customers not replacing handsets, since they see no reason to. "A growing data divide continues in cellular handsets," he said.

"Those who see the value in wireless internet access are justifying the investment, whereas voice-centric users have little incentive to upgrade, which is obviously detrimental to operators who seek to sell data plans and media-access services to subscribers."