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iPhone Becomes AT&T’s No. 1 Phone

10/19/2007 09:38:00 AM Eastern

Boston — About 1.1 million iPhones were sold to U.S. consumers in the third quarter, making the iPhone the top-selling handset in the AT&T portfolio and the industry’s fourth best-selling phone overall, Strategy Analytics said.

iPhones accounted for about 13 percent of AT&T’s overall handset sales during the quarter, Strategy Analytics said.

All told, 1.325 million iPhones were sold from the end of the second quarter, when the phones were launched, through the third quarter, the research company said. The phone attracted a broad demographic base, the company added. “The sales trajectory we are observing with the iPhone could make it the top selling device in the U.S. over the next 1-2 quarters,” said Strategy Analytics VP Barry Gilbert.

Currently, the top-selling handset in the United States continues to be Motorola’s Razr V3, but the device “appears to be losing momentum as new and more competitive models that erode both its share and popularity are being introduced,” Strategy Analytics said. The top 10 handset models account for about 25 percent of total handset sales in a typical quarter, the company noted.

Strategy Analytics also found that although the largest percentage of iPhone buyers was between 20 to 30 years old. “The fact that nearly 25 percent were between 50 to 60 years old demonstrates that the device attracts buyers across a broad age spectrum,” added Strategy Analytics VP David Kerr. “Thus far, 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.”

The typical iPhone buyer, he added, is “upwardly mobile and college educated with a six-figure household income,” he added.

“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,” added Gilbert.

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