Strategy Analytics: Apple iPhone to become U.S.‘s #1 handset within 3-6 months

“AT&T recently revealed that the 4-month-old iPhone is its top-selling handset. How long until it leapfrogs the competition — including Motorola’s iconic RAZR — to become the No. 1 handset in the U.S.?” Elizabeth Woyke asks for Forbes.

“Three to six months, says research firm Strategy Analytics,” Woyke reports. “It calculates that the device, which Apple reports has sold 1.4 million units since its June 29 release, is the fourth-best-selling handset in America. Moving 1.6 million to 1.7 million more phones in the fourth quarter would likely put it at No. 1, says Barry Gilbert, vice president of Strategy Analytics’ BuyerTRAX, a quarterly consumer tracking program. ‘The iPhone has momentum that is basically unparalleled,’ says Gilbert.”

“To claim the volume lead, the iPhone would need to outsell the top three handsets — currently Motorola’s RAZR v3, LG’s Chocolate and LG’s VX 8300, according to iSuppli,” Woyke reports. “In terms of profitability, the game’s over already. Though numbers for the v3 are all over the place, iSuppli estimates that Motorola nets about $35 per unit. Apple makes about $133 off each iPhone. The figures don’t take into account revenue or royalties from the carriers.”

iPhone’s performance in the market is “articularly impressive given that RAZR enjoys a clear mass-market edge. It works on every major wireless network in the U.S., while the iPhone is currently only available through AT&T. It’s also cheaper. Wireless carriers subsidize the the cost of the v3 by as much as 100% to lure subscribers.,” Woyke reports. “‘The iPhone was originally viewed as a niche product,’ says Gilbert. ‘But its design, features and functionality are turning out to have broad appeal.’ Imagine that.”

Full article here.

[Thanks to MacDailyNews Reader “Mike in Helsinki” for the heads up.]

Only those who didn’t grasp the history and success of the iPod while also failing to understand the iPhone initially viewed the iPhone as a niche product.


  1. Unfortunately my iPhone has been on the fritz, intermittently turning on when it is sitting flat on a table, no sound coming from the speaker an a message saying “This Accessory is not made for iPhone would you like to turn Airport on?” when nothing is connected. Going to Apple store to get it replaced.

  2. “Imagine that”. The context of those words explain the whole story why Apple “gets it”, and the rest of the tech world, and particularly the so-called “analysts”, are so clueless.

  3. I now know why in their minds, MS, Motorola, Palm et al. never saw apple with a chance in the mobile market, and its because their modus operandi is so mediocre that from their point of view it would be an impossible task. But apple has pulled it off as only they can. and I’m not being a fanboy, the facts and figures from the past months confirm this.

  4. Less than 10% of the total market, appealing mainly to those with several hundred spare dollars and a need (or just a want) for a smart phone (or just for whatever is the latest toy) … that’s a niche. Apple may not be willing to allow the iPhone to be subsidized down to “free” status, but they could reach #1 just by capturing most of the Smart Phone niche.
    “What do you use your iPhone for?”
    “Making phone calls … and getting my web mail and pron at work without the bosses catching on.”
    “Hadn’t thought of that, maybe I’ll get one, too.”

  5. Every time someone sees my iPhone, they want more information. The interest on it is unprecedented by me with any other gadget. Everybody states that their next phone will be an iPhone. This is only version 1.1.1, imagine what version 2 or 3 will be like.

  6. @DLMeyer
    It is sooo obvious you don’t own one.
    What do you use your iPhone for?
    Get directions, check my e-mail (you can view PDF, Word, and Excel attachments on it.), check my stock, watch movies, listen to music, watch YouTube stuff, have all my contacts from which I can call, send text messages, send e-mail or get directions to their place, check for wether conditions, check traffic conditions, take notes, take photos, set calendar appointments, buy music, calculator, stop watch, alarm clock, check for movie listings… I could keep going. But if porn is your thing, it certainty dose that too. All this before the EXPLOSION of third party applications that is bound to happen after February.

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