IPhone Ousells RAZR To Become Top Cell Phone In U.S.

Apple's iPhone 3G became the top-selling mobile handset for U.S. adults in the third quarter, ending the Motorola Razr's long reign and signaling a shift in consumer tastes toward more feature-laden phones, according to new data from market research firm NPD Group.

The Razr was ranked the top-selling consumer handset for 12 consecutive quarters. The iPhone's ascension represented a "watershed shift in handset design from fashion to fashionable functionality," NPD analyst Ross Rubin said in a statement.

Rounding out the top five handset models were Research In Motion (NSDQ: RIMM)'s third-place Blackberry Curve, followed by the LG Rumor and the LG enV2. In terms of features that attracted buyers, 43% of people surveyed by NPD cited the need for a camera and 36% noted the ability to send and receive text messages.

Mobile phones with a QWERTY keyboard experienced the greatest year-over-year rise in sales, accounting for 30% of all handsets sold in the third quarter, up from just 11% a year ago. Also in the quarter, 83% of mobile phones purchased were Bluetooth enabled, versus 72% a year ago; and 68% of phones were music enabled, versus 49% a year ago.

Nevertheless, the iPhone's popularity among U.S. consumers failed to lift the overall market. Handset purchases overall declined 15% from the same period a year ago to 32 million units, the NPD Group said. Handset revenue fell 10% to $2.9 billion, even though the average selling price rose 6% to $88.

(November 11, 2008)