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

[StevoX95]

Here's why the Storm won't do well - it has the name Blackberry attached to it. The blackberry is the most counterintuitive mobile device I've ever used.

I don't understand why everyone is looking for an iPhone killer - its sad that when a device comes out that is better than the one you have, you have to be a hater. Just adopt, man! There will be no iPhone killer - the iPhone's interface makes sense - touch this to go here, all apps have the same interface, you learn one app, you learn them all. Easy to use. Contrary to popular (due to untested) belief, the keyboard is very easy to type on. I adjusted to it after about 3 days. Just have to find that sweet spot on your thumb. . .

"WOO! I want an iPhone killer." Grow up. Its a great piece of technology. What, do you worship RIM? Are you waiting for the almighty return of the Blackberry? The iPhone is the best right now, and has been for over a year. Judging by Apple's track record and all of the proclaimed "killers" of their products, one is not coming. Case in point - iPod: 7 years, still the top dawg. How many "killers" has that one had? Keep dreaming.

[peaceful]

HAD A SIDEKICK, WHICH SAVED MY LIFE WHEN I BROKE MY SHOULDER LAST YEAR. IT WAS SIMPLY IMPOSSIBLE TO TYPE ON A COMPUTER KEYBOARD. GOT A 3G WHEN IT CAME OUT AND I LOVE IT. ESPECIALLY THE "RETURN TO" FEATURE OF DEFAULTING TO THE PREVIOUS APPLICATION WHEN INTERRUPTED BY AN INCOMING TELEPHONE CALL OR TEXT MESSAGE. MY FRIEND HAS AN ORIGINAL IPHONE AND SHE CANNOT WAIT TO SWITCH OVER TO THE NEW 3G...ALSO LOVE A FEW OF THE APPLICATIONS SUCH AS LOOPT, AND URBAN SPOON.
PEACEFUL

[Durr]

The blackberry Storm will fail.

It has something like 9? buttons on the phone. That's entirely too many for a phone thats supposed to be completely touch screen functional.

The click-screen? That's lame. Why do I need to feel the screen click. Maybe if they put in haptic feedback, that would have been cool. But the click-thru screen is just stupid.

And Verizon blows big time. At least every other carrier allows you mostly free reign on your handset. Verizon locks GPS? That's a free technology! It costs them nothing to implement it. Bluetooth transfers? Not with verizon.

Long story short: The Blackberry Storm WILL NOT outsell the iPhone. I would bet anything on it.

[Josh Nielsen]

I bought a Macbook Pro last year so i had a laptop to use at school, and i have a top of the line Windows OS Sony Vaio desktop in my room, but ever since i got my Mac, i havnt even turned on the Sony. The difference is incredible. The same goes for the iPhone. When Mac puts out a product, especially handheld, it just eats up the market, and if not that, the ratings, cause all of there products are expensive, but certainly not overpriced, and you would know that if you own a mac or other apple product. And as for iPhone killers, its going to b a while...if ever. All other carriers have come out with so called killers, but when you put one next to the iphone, the screen size is smaller, the qualuty of picture and video doesnt touch it, the srcreen and graphics on the iphone are crystal clear, like HD, and it can run 3D games and apps. (the app store is incredible) I cant even begin write a review on how much better the iphone is cause it would just go on and on. But i saw googles interface demoed on Youtube, and it looked cool...but not where near iPhone quality or funcionality it looked like they were looking at the iphone and trying to mimic its functions and ideas whithout copying it exactly. And its typical though cause for years microsoft has been putting Mac OS up o na pedistal and telling there people to copy it, but they havnt been able to. all the new features that Windows Vista boasts mac had 4 years ago, and now have an even new operating system out. When they drop a product, itsj ust gonna be better than everything else out there. If you are a Mac hater...i beg you, just buy one. The difference in everything is just endenyable

[Jim]

I have been a Mac user since 1985 (?). Bought one of the first ever made. I have not looked back. I am on my fifth version - a MacBook. I would love to have an Iphone, but can not use AT&T in my area. Apple, why did you choose to abandon so many of your faithful customers?

[Parkker]

Verizon stinks. I guess Apple doesn't want to deal with them because Verizon would want to remove most of the iphones funtionality, then make you pay extra for every little bit you wanted to unlock. I wish there were other carriers in my area but fascist Verizon is pretty much the only choice. That's just not right.

[heidi]

I personally hate my Iphone and won't buy another product from Apple, between the lack of customer service from Apple & AT&T I am sorry that I ever renewed my contract. My phone never sinks right and everytime I go to update my phone, I go 4 days without service. That is Apple sending me to AT&T and then AT&T sending me back to Apple. I am sorry that I got rid of my little Samsung it was way better then the pos that I own now.

[brett]

For all the people out there that think it is AT&T's service that is dropping the calls, or that Verizon has less dropped calls, it is your phone. Every single cell tower in America is owned by AT&T. The quality of the reception your phone receives is just how good the antenna on your phone is.

[brett]

"heidi", you should spend the $20 to upgrade to the new software for the iphone. You will receive far less dropped calls and you wont have problems syncing anymore.
I own the iPhone 3G and love it. But, I dont like that the screen gets dirty quickly, it doesnt offer MMS or video recording, and it also doesnt let you watch video from the web browser. Also, the camera doesnt have flash or let you put graphics and other cool stuff in the picture, like samsung phones let you. Even with all of these features missing, I still love my iPhone and wouldnt trade it for another phone that is out right now.

[Charles Mukuka]

The iphone is a very good phone and makes life so much easy. The Razr is very unstable.

[Damien]

The Iphone does do MMS, Video and Web Streaming you just need to get the applications to do it and make sure you are running the latest iPhone OS.

I am on my second iPhone and until Apple makes a third version I wont be upgrading, I have used most other phones around and they all pretty much suck in comparison to my sweet iPhone.
In Australia i have never had such good reception on any phone that I get with my 3G iphone, having active GPS, all my music and apps that actually work, make this more than a phone. it's a palm sized macbook!
Apple simply designs great products and has the best Software and OS on the market.
I am a Computer System Tech and my client are always blown away when i pull out a macbook pro to diagnose there buggy PC. I have owned and used Mac's for years and will never go back to the dark Side :)
Peace!

[Benjamin Wesson, Dexterra]

The findings in this article are of no great surprise. You only have to look at what the iPod did for the mp3 player market to realise that Apple has form in shaking things up. Although iPhone has had more established players to take on than the iPod (most notably RIM’s BlackBerry), it would be foolish to underestimate the ‘Apple effect’ in any consumer space.

It just goes to show the power of good design, as there’s no denying that iPhone has raised the bar when it comes to desirable handsets. It remains to be seen how Motorola will respond, but until there are enough handsets to rival iPhone in terms of attractiveness and usability, I would expect the number to keep sliding in Apple’s favour.

[Jay]

I concur with those of you who complement the Apple experience. My Sprint/Nextel contract is up in Nov 08 & Dec 08 respectively (2 phones), and so I jumped ship (for both the office and personal cellular service), to ATT/Cingular, and I bought the G3 i-phone in Oct 08, and love it. Much better service from the ATT/Cingular coalition, than I got from Cingular back in 1998. I'm out on the periphery of the SF bay area, and so I alternate between the Edge and higher speed network. That seems to work pretty well also, though I have noted that in areas where I'm in and out of the 3G service area, I drop calls unless I downgrade to the Edge network in my settings. That's fine, I can manage that.

I'm still getting used to using it (3G i-phone), and would like to see it auto-fill, in all applications, and want copy/paste, and I want "Documents to Go" on it also. But, it will get there. The build quality of the phone is great, the user interface is very intuitive, the special use apps are appearing, and as I say... the interface is very intuitive, like all things Apple.

I bought a Macbook pro this summer because I was sick of the constant updates in XP, and hate the Vista experience. Frequently after updates, I would loose functions in my Microsoft office suite applications. My WinXP machine wouldn't recognize my printers, wouldn't be able to find it's address books in the e-mail client, wouldn't be able to do file attachments from the MS office suite application menus. Functions would disappear from MS's own applications after each update. I got sick of fighting my equipment, and the compatibility of applications. I don't have a full time IT guy to support my small office, and I need things to work.

My new i-phone virtually automatically set itself up for mail, and my home network. My apple equipment just works... Printers, are wireless, backup is wireless, and it is all do-it yourself, with no IT support.

Back in June or July 08, I bought a Blackberry for my office; before I changed providers...I hated the interface. It was non intuitive, for this former palm user. I backtracked to using the Razr as my office cell, now but do all my calendaring on my i-phone since I bought this.

I defected from Apple back in 2003 to WinXP because some of my applications needed XP, and didn't do well under the emulation software available during that era. With the Intel processor dual-core Macs now that is a non-issue. I can do everything on the Mac, including running WindowsXP faster on my MBP, than on the office 3.0gighz Pentium desktop... go figure!

I migrated to Apple MP3 players a year ago, after years of "Rios, and "Sansas", etc. I've now bought four i-pod devices (counting the 3G i-phone), and given away my other mp3 stuff, passed on my first i-pod purchases to my son and others, and everybody enjoys the i-pod/i-tunes experience too. The techie salespeople bash the i-tunes store and the i-tunes monopoly, but hey, I don't want to become a techie to get music, books, podcasts, movies, tv and applications. Everything plugs into the component video on the home LCD TV, with no fuss. I’m no technophobe, but please, just charge me 99 cents, and let me get on with the rest of my life.

The entire Apple experience has been pretty seamlessly smooth for me. Kudos to you Steve Jobs. You may be the "purveyor of the great reality distortion field" but it works for me.

[TZMN]

I have the entire Apple system, imac, apple tv, time capsule, and 3G phone. Converted from other services and PC based systems. The Apple support is nothing short of fantastic. The 3G phone integrates in a great way with the iMac and operates flawlessly at least that is my experience. The reception is superior to the other service that I still maintain so I use both systems every day in business and home. The service from AT&T is really good but could be significantly improved. Customer service is a real person but requires too much time to speak to a rep. The cost I believe for full service is excessive. I get similiar service unlimited calls for half the price through the other service. Maybe AT&T needs to adjust maonthly unlimited rates and I would give them a 5 star rating. I agree that Apple just produces a superior product to PC based machines; NEVER HAD A CRASH OR LOCK UP! I definately can not say that about my top of the line PC!! It takes some time to really make a real conversion to the light but you will never go back to the darkside once you have made the switch!!

[smthingfantastic]

I love all things APPLE. BUT. I HATE AT&T terrible carrier, terrible customer service, terrible rate plans and the contracts are ridiculous!!! I agree with some of the other posts, Apple should not be attached to one carrier with such limited rate plans/usage plans. I'd have bought one long ago if I could choose a more affordable plan, preferably not with AT&T.

[ThatOneGuy]

RE: "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."

Uhh,.... yes you can! Maybe not over the phone, but the AT&T stores all have an upgrade exemption for iPhone so you can get the better (upgrade price) on a new iPhone. Just go ask any sales rep face to face and you can get wheat you want!

[M Elangovan]

I am surprised that you can text whilst driving in the States. Here in Singapore, it is an offense to use a handphone whilst driving unless you have a handsfree device (a earphone will do with voice dialing). Your handphone can be confiscated and you can be suspended from driving for a year, if you are caught.

[dotjjones]

WOW! It's so amazing to see all of the passionate opinions for and against the IPhone. Myself, I still have the ITouch, and a Verizon LG (with Vcast). On 12/24, my 2 yr K is up, and then I have to decide on IPhone 3G or "Storm". I need some honest help!!! I personally have never had any dropped calls from V, they have treated me well as a long time cstr. In the late 90's, horrible experiences with AT&T, so am a bit dissuaded against it, even tho I LOVE my ITouch--have a gadzillion apps on it. I don't much like the inability to use a stick with it, and hate the "keyboard". But with the IPhone, I could transfer my apps, ITunes, etc. Here's what I need and Love!!! I MUST be able to sync my "smartphone" with my Outlook calendar!! Need national covg with no roaming. Music, videos, pics, etc. So how to I get an honest comparison between the features/benefits of the IPhone & AT&T against the Blackberry "Storm" & Verizon? Since "Storm" isn't even out, I'm not sure how anyone can speak to its pros/cons, but give it a try. 2nd problem, IF I were to move to AT&T NOW, I would probably incur early out penalties from Verizon, since contract expires on 12/24. On 12/24, I can upgrade to "the Storm" for another 2 year contract, IF it actually comes out. AND, if it comes out soon, and I cannot upgrade until Dec., there will probably be a mad rush and I'll have to wait list for a "Storm". Help!!! I just don't know what to do?????

[Brandi]

If you are texting while you are driving, you deserve the accident you're about to have. Texting while driving is something stupid teenagers who just got their licenses do, not responsible drivers. Stop risking your safety and the safety of others just to text while you freaking drive, nothing is that important, and if it is, pull over and text. Ease of texting while driving shouldn't even be a consideration when assessing a cell phone, it is unsafe with ANY phone.

I am an Apple user, I have a MBP and iPhone, and I love them. I only use my windows machine to play games. ANYTHING else gets done on my Mac, and I wouldn't trade my iPhone for ANY cell phone, even the "Storm."

[Richard Krent]

When is the iphone coming to Dubai!

[elwood.owns.you]

my iphone has allowed me to move away from my computer to complete a whole bunch of things that i used to have to do as a ritual type thing when i would get home from work. check my email.. check myspace... then facebook... then yahoo groups.....etc...etc..now i do these things on my iphone in a flash and have more time with my wife and kids. Sounds like a smart phone to me. and the toughness is ridiculous. the 2 yr old dumped the aluminum 8 gigger into a bowl of sweet corn repeatedly and although a tad wonky, it still works. there seem to be a few little quirks but after taking a liquid hosing(sticky corn juice oozed when i picked it up) it is still %98 funtional(the power button is iffy and the ringer switch is toast)i will be replacing it with a black 3g tomorrow but it still lives as my friend used it after the unpleasantness happened and still wants to buy it. toughest phone i have ever owned!

[Jan]

I bought a 3G iphone in August and have not had a dropped call yet. I use it regularly with an OpenSSH client to remote into work.
I like the GPS feature too - wish it had more of a turn by turn capability, but it's good enough.
Right now, i'd rather have this phone than any other due to the high functionality. I also doubt Apple will rest on their laurels - it's going to get better continually.

[eztider]

First I bought the 2G iPod. Then came the iPod mini, the iPod photo, the iPod shuffle, the 4G iPod, the iPod Nano, the iPhone, the Shuffle 2G, the iPod Nano 2G, the iPhone 3G and then the iPod Nano 3G.

I needed a notebook so I bought a MacBook Pro. That lasted four years, then I sold it and bought a MacBook Air. I needed wireless, so now I have an AirPort Extreme and a Time Capsule, plus two Airport Express. I needed desktops so I got an iMac and a Mac Mini. I got a big screen HD television and then I needed an Apple TV. And it was all easy to set up, all works together without problems and no equipment failures.

I've got Tivos, Slingboxes, printers, and everything else you can find in the aisles at Best Buy and it all just works. Oh, yeah, I still have two PCs, running Windows XP that I'm waiting to die so I can get the new iMacs. Kudos to Apple for making an electronic life that's worth living.

[swordfish]

i personally hate razr when it came out, yes is stylish and thin, but it is a piece of crap. and motorolla just need to make chipset and leave the phone part only. even their pda phone is crap. u figure after all this phone came out they should learn by now. i always have sprint. last phone i have its htc touch. suppose a iphone killer, but even i have custom roms, and running diamond touch and iphone interface on it, it still not a iphone, iphone have the market down. when ppl talk about touch screen phone, the first thing come to mind its iphone. lol even when i first have my htc touch, people ask is it a iphone? i been with sprint for 6yrs love their internet speed. but i end up leaving them. becuz i want a iphone, so i look at att plan, and its expensive and horrible service, so i end up went to tmobile.
i got me a first gen iphone, unlock and jailbroke using on tmobile and love it, after a week i got another iphone for my wife. and she love it and she is very picky on phone. even i can only use edge, i still love my phone, now i upgrade to iphone 3g. and love it even more. even there's not much different on speed, screen resolution, and gps really not much different, other then is little bit more accurate. but just love the way it feel and look.
one thing i have to say. iphone is friendly for both man and woman. it's easy to use and very easy to customize the way u want it, inside and outside. specailly when u jailbreak a iphone the customisation are much more.
now there's few things i don't like what apple doing with iphone and ipod, battery is lock down. u can't change the battery. even a after market battery it's lockdown, ipod battery will fail after a period of time, and iphone battery will fail to 80%, and it'll cost 100bucks to send to apple,(funny thing is u can buy one from ebay with special tool for 10bucks)
also apple have a apple app killswitch build in, it allow apple to take off any application without ur permission.
so to me apple are very greddy and want to total control on the product.
smart but greedy.
all this infomation its from the internet. i didn't personally come up with it. if u guys interest to know more, search your favor websearch engine. to find out more.

I LOVE my IPHONE !! I've always hated every cell phone i've had, but LOVE the IPHONE ! For the same cost, I get much more on my plan than sprint gave me. And my phone was junk. I'd really like landscape texting though. ???