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October 19, 2007

Strategy Analytics: iPhone Becomes AT&T Top Seller

By Narayan Bhat, TMCnet Contributing Editor

Apple Inc.’s iPhone (News - Alert) became AT&T Inc.’s top-selling mobile phone in the third quarter, according to research firm Strategy Analytics.

Together, Apple and AT&T (News - Alert) have sold about 1.325 million iPhones since the device’s June 29 debut, Strategy Analytics said Thursday in a statement.
The research firm predicted that the iPhone may become the top U.S. handset in one to two quarters, unseating Motorola (News - Alert), Inc.’s three-year-old Razr.
“The iPhone has become AT&T’s top selling device, commanding some 13 percent of AT&T’s overall handset sales, and the fourth top selling handset in the U.S. market,” said Barry Gilbert, VP of the Strategy Analytics.
“Although the iPhone hasn’t had an expansionary impact in the market, the iPhone has quickly assumed a leading market share position and raised the ante for smart devices,” he added.
Currently, the top selling handset in the U.S. continues to be Motorola’s RAZR V3, however, this appears to be losing momentum as new and more competitive models get introduced to the market, says the report.
The research report, named ProductTRAX, notes that the top ten handset models account for approximately 25 percent of total handset sales despite an increasing number of device offerings.
“While the largest percentage of iPhone buyers is between 20–30 years old, the fact that nearly 25 percent were between 50–60 years old demonstrates that the device attracts buyers across a broad age spectrum,” David Kerr, Vice President of the Strategy Analytics Global Wireless Practice.
The research firm says iPhone users are quite satisfied with phone design and features; however, they are slightly less enamored of actual iPhone reliability, battery life, documentation, and customer support.
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