The iPhone Already Nets Best-Seller Status

That was fast.

Apple’s iPhone was the top-selling smartphone model in the
U.S. for July, the first full month it was available. Survey results
released today by iSuppli ranked the iPhone with about 20 percent share of
domestic smartphone sales, ahead of the best-selling Blackberry models and
other popular smartphones.

“The iPhone sales for July were ten percent higher than its next
competitor, the Blackberry series,” Greg Sheppard, chief development officer
at iSuppli, told
“It’s a remarkable accomplishment for the iPhone given it was the first
month of sales.”

Whether the iPhone can continue to gain share remains to be seen. There
was a lot of hype and built-up
for the iPhone, which was readily snapped up by the first wave of
early adopters. “I think the real tale will be told when we get the fourth
quarter figures including holiday sales,” said Sheppard.

Some interesting demographics emerged from the iSuppli study that comes
from on a consumer panel of more than two million participants in the U.S.:

About 57 percent of the iPhones bought in July were purchased in the
U.S. by consumers 35 years old or younger. There was a near even split of
purchasers based on gender, with fifty-two percent of the iPhone buyers
being male. Also, a quarter of the consumers buying the iPhone switched to
AT&T, the exclusive provider of service for the device.

iSuppli maintains a bullish outlook for iPhone sales, projecting 4.5
million will ship this year, over ten million in 2008 and over 30 million by
2011. In July of this year, iSuppli estimates the two iPhone models (4 and 8
GB) outsold the entire Palm portfolio of phones, Blackberry and any
individual model from Nokia, Samsung or other branded provider.

The pricey iPhone ($499 and $599 for the two models) captured a tiny share
of the overall market for mobile handsets in the U.S. for July at just 1.8
percent. But the iSuppli report calls the sales “amazing,” given Apple earned
its sales competing against numerous well-entrenched competitors.

Sheppard speculates Apple could reduce the price of the iPhone somewhat as its
volumes increase and it looks to sell beyond the early adopters. He also
thinks Apple will see a sales gain after it offers a higher speed network
like 3G, which he sees as a more of a “when” than an “if” issue.

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