iPhone becomes top handset in U.S., passing RAZR

Move over, Motorola. The iPhone has shaved away your lead in the mobile phone market, passing the RAZR to become the top handset purchased by U.S. adult consumers in the third quarter of 2008, according to the research firm NPD Group. The RAZR had held onto the top spot for 12 quarters.

Consumers are buying more iPhones than RAZRs because there is a "watershed shift in handset design from fashion to fashionable functionality," said Ross Rubin, NPD's director of industry analysis. That means consumers don't care only about looking cool anymore -- they want to look cool with a phone that doesn't have an 18% failure rate.

Research In Motion's Blackberry Curve came in third in NPD's ranking. A different report last week, from Canalys, found that the iPhone had passed RIM and Motorola to gain a 17.3% share in the smartphone market. That report showed Nokia still hanging onto first place globally. RIM could be hurting because the Blackberry has twice the failure rate of the iPhone.

Still, according to NPD, the jump in iPhone sales wasn't enough to stave off a slowdown in U.S. phone sales overall. Phone purchases declined 15% in the third quarter from the same period last year. Revenue fell 10%.

It's unclear if the iPhone rush will continue: NPD said mobile phones with QWERTY keyboards saw the greatest year-over-year rise in sales. About 30% of handsets sold in the third quarter had QWERTY keyboards. And as all of us fat-fingered people know, a tactile keyboard is not one of the iPhone's many assets.

-- Alana Semuels

Photo: The iPhone and the RAZR. Credit: Parislemon via Flickr

Comments

[BLW]

RAZR is a piece of junk. They break so easily. It's easily understood why iPhone has surpassed it.

[Rob McMillin]

I used to say, "friends don't let friends buy Motorola", but the RAZR changed my opinion on that. I mostly like my RAZR, for the most part, and Verizon service that it comes with is actually good; it's much better than the feigned ignorance of dropped calls and other service problems that AT&T Wireless had (when you could actually get customer service on the phone, that is). I will NEVER re-up with AT&T, even if that means foregoing the iPhone. The Blackberry Storm is coming out soon, and it's supposed to be pretty close to an iPhone killer.

Unfortunately, the Storm -- a Verizon exclusive -- also means dealing with that company's typical (and frankly annoying) attitude that "we own your phone, you're just a user, so shut up about all the features you're not getting" that also makes the RAZR at times irritating: applications can't be backed up and must be re-purchased with every phone, so you're spending money if, as happened to me, a phone dies on you. This goes hand-in-hand with their disabling of USB access, something other carriers leave on. Their network is demonstrably better (no dropped calls, living up to that part of their advertising), but their attitude is only just a little better than AT&T's. As just one example: the Storm won't have WiFi built in, though RIM has the feature on other handsets. You're stuck with whatever bandwidth you get on Verizon's data network, good or (likely) bad.

[rhangelxs]

RAZR isn't Razor and some of models from this is useable, but i'm using my nokla with my pda assistant and this is the best way to have a lot of functionality

[Gary K]

iPhone would be selling even more if it wasn't for AT&T's policy of not allowing you to upgrade to the new phone unless you are within a month or so of your contract's end. If you aren't near your contract's end then they want to tack on an additional $200.00 to the cost of the iPhone.

[eugenio of Melbourne Oz]

A tactile keyboard if perfect deterrent to the late night boozy or early morning groggy impulse text messages that often cause a lot of embarrassment. Its great that you have to be in a proper typing head space so that your fingers do what your head says. Also makes typing while driving near impossible and would indirectly be the prevention of many road accidents.

[Bill Mosby]

Absolutely amazing how well the iPhone appears to be catching on.

I was never much of a fan of cellphones of any kind, and only bought my iPhone so I could develop a game for it. After having one for a couple of months, though, I can see what a game changer (no pun intended!) it will be. I've got so many ideas for other software to write for it, the only things that might hold me back would be a lack of time an excess of potential for bad patent lawsuits!

[Steve Jobs]

Nokia is "hanging on" despite selling more than twice as many smart phones as the number 2 manufacturer?

[Anonymous]

"eugenio" I have to say that my best friend owns an Iphone and she still drives while texting. I am actually afraid of riding with her at times. If one example isn't enough, my three other good friends own an iphone and won't give up their trend of "texting-while-driving" regardless of what phone they have. Based on this experience, I can say that for these people iphone is actually dangerous because not only is it hard to type while driving, you loose all and any concentration unlike keypad phones where you can type without looking.

[MBQ]

I like my iPhone. ATT has been alright by me. I would probably enjoy Google's G1 on T-Mobile too. -MBQ

[gary]

Switched to iMac and iPhone last year. Will never go back. Coolest phone
and computer I've ever used. I have an old WinXP laptop and can't think
of any reason to use it. The iPhone is like having a PC in your pocket.
We took it to Paris this summer and we had instant Google maps whenever
we needed it. I just saw they have a Metro app for download to make your
way thru the subway system in Paris. Too cool.
I'm not surprised they are number one. I'm really picky about my cell-phone
and if anyone comes up with something better I'll be the first to buy it.
There is nothing close to iPhone for now or I'd have it. And I can't come up with
any reason to use Microsoft products. I just don't need them anymore.
That is weird to me because I used them exclusively from 1983 until 2007.
Didn't know what i was missing. Apple has pretty cool stuff. Cheers.

[Dexter]

Just a pity Apple doesnt listen to its customers, as it would have happen sooner if they did, and the phone would be much better than it is today.

Ahah!!!

I don't know if in Europe we are going to see the same trend. I'm sure the sales figures for the iPhone are Ok, but not as good as if we, the consumers, could freely select the carrier with which we will use the iPhone, bought at a reasonable price of course. See, we don't usually like anti-trust ways of doing business like "If you want to buy this product you will also have to buy that service. Which has nothing to do with it, and by the way is worse than the service you're using right know from a different company... ". So, in Europe Apple could perform a lot better in sales if they didn't use such an American approach to our market.

[Gat0r]

I was reluctant to get an iPhone because I had Razar, a treo, and Verizon and loved it. Finally got the iPhone when the g3 came out. Will never own another device, forget about it. I've had all the others too, reg phones, treo's, blackberrys, etc.. NO CONTEST !! iPhone G3 makes them all seem like pieces of junk, and AT&T service has improved 100% since I had them last about 5 years ago.

[GSR]

Use a company Blackberry but would rather have an IPhone based on my experience with my ITouch. The tiny keyboard on the Blackberry is more maddening than helpful. Touch screens are much easier to navigate through, and the bigger screen improves the usefulness of many applications, such as maps.

[Kage]

I love the Iphone but really hate the AT&T service. Drops calls, call quality is horrible, signal strength is bad...and I live near a big city. If it were not for the phone I would have gone back to my old carrier a long time ago.

[Eric]

Just got an iPhone on Friday. I've been using a Blackberry for two years now. Could not wait to dump it. The keyboard is highly overrated and probably the biggest false meme about the iPhone going around. It's time to put that lame argument to bed. I've got big fingers. And though I did play the violin for 19 years, I don't think that's the only reason I took to the iPhone keyboard so quickly. I'll take its keyboard over the Blackberry any day.

[iPhonePending]

Gary K. and Gary, you took the words from me. I'm waiting to get to upgrade status so I can get the iPhone 3G. I switched from Sprint to AT&T 3 years ago and see a marked improvement in customer service and overall carrier quality. I switched from PC to Mac 6 years ago and never want to use Windows products again.

[mike]

I Phone in my opinion is the best, the key board is there when you need it, not taking up space when you don't. The app store provides unlimited resources for every ones needs. As far as ATT, I only have one complaint, no 3G wireless broadband were I need it, but its coming soon. One great thing about ATT, is "rollover minutes", and as far as call quality, I get a signal in places I didn't with Verizon and vis versa, so in that respect I would say their equal.
Didn't know what I was missing till I switched to Mac, well worth the cost, the only thing that held me back in the past. Will never look back.

[Jim Randel]

From all the texting while driving it seems that maybe 1 of Obama's first executive orders should be to make the touching of ANYTHING other the the vehicles controls a first degree felony when you are the operator.

[Peter Zimmerman]

Att has fewer bars. I am hoping the new blackberrry will be a competitor so I can switch back to Verizon. ATT: no service at home, work and drops calls in between ( and I am always within 10 miles of Nashville) Verizon: Great service at home, work and in between.

[KC Hicks]

I passed on the iphone because you are forced to subscribe with AT&T All in one plan is about 175.00 with Sprint I have Samsung instinct Everything is just 99.99 in reserching this it is NOT what the iPhone could do - but rather what AT&T will allow it to do. AT&T caps your bandwidth.

[Daniel]

I Lloved motorola, finally got an iPhone 3G, I will never go back. loved Microsoft, finally got a MacBook, I will never go back.

[tsan]

Shortly RIM/Blackberry/Verizon will launch the Storm and I assure you that the market will respond favorably...

[austin]

i am hearing all this trouble with AT&T on this message board, but if you live in canada, i would defiantly recommend a iPhone, rogers has no dropped calls, great signal and great service.

[rodger]

I bought the iPhone when it came out and thought it was without a doubt the best phone made. I bought the iPhone 3G when it came out and thats the only phone better than the original. iPhone is better than any other phone made because no matter how anybody else makes their phone Apple will update the iPhone to be better. I would not own any phone other than an iPhone now that I have had one. I have owned a razor, sliver, multiple sidekicks, and a blackberry none are even close in comparison to the iPhone.