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Thu, Nov 20, 2008 - 12:19 PM EST  —  AAPL: 84.66 (-1.63, -1.89%)  |  NASDAQ: 1379.73 (-6.69, -0.48%)

Apple iPhone is AT&T’s top selling device and #4 handset in the U.S.
Friday, October 19, 2007 - 09:10 AM EST

The latest Strategy Analytics data from its ProductTRAX program projected that nearly 1.1 million units were delivered to U.S. consumers through the combined AT&T and Apple outlets during Q3, totaling 1.325 million units since the iPhone was launched in late Q2. "The iPhone has become AT&T's top selling device, commanding some 13 percent of AT&T's overall handset sales, and the 4th top selling handset in the U.S. market," said Barry Gilbert, VP of the Strategy Analytics BuyerTRAX programs, in a statement.

"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," according to Mr. Gilbert. "The sales trajectory we are observing with the iPhone could make it the top selling device in the US over the next 1-2 quarters."

Currently, the top selling handset in the U.S. continues to be Motorola's RAZR V3, however, this appears to be losing momentum as new and more competitive models that erode both its share and popularity are being introduced. ProductTRAX research notes that the top 10 handset models account for approximately 25 percent of total handset sales in a typical quarter despite an increasing number of device offerings.

"The typical iPhone buyer is upwardly mobile, college educated with a six-figure household income," according to David Kerr, Vice President of the Strategy Analytics Global Wireless Practice. "While the largest percentage of iPhone buyers is between 20-30 years old, the fact that nearly 25 percent were between 50-60 years old demonstrates that the device attracts buyers across a broad age spectrum."

ProductTRAX from Strategy Analytics captures these quarterly key metrics for handset buyers to support its sell-through volume estimations.

Related report (for Strategy Analytics customers only) here.

[Thanks to MacDailyNews Reader "RadDoc" for the heads up.]

MacDailyNews Take: The fact that a device at iPhone's price point is already #4 in the U.S. (where people have been conditioned to expect highly-subsidized phones) ought to scare the bejobs out of the other device makers and carriers.

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Oct 19, 07 - 08:15 am Comment from: Macromancer

Clearly the tether to AT&T;is the weak link that prevents people from jumping onto the iPhone bandwagon with even more enthusiasm.

Oct 19, 07 - 08:17 am Comment from: The 84 Mac Guys

Is every other company out there totally incompetent. Why is only Apple coming up with hugely innovative technology? I'm glad, since I've been using Macs since 84, but curious nonetheless.

Oct 19, 07 - 08:21 am Comment from: M.X.N.T.4.1

The thing we have to remember is that even with Apple's success in computers and with the iPod, this is there first shot at the phone market. This is the first version of the product line. What are subsequent versions going to be like and do to the market? That's what will really scare the other companies. If they're fscked now, it isn't going to get any easier.

Oct 19, 07 - 08:41 am Comment from: TowerTone

I not anywhere near any of those demographics.

MDN, what is a bejobs?

Is it a subset of the heebee jeebees, creeps, or willies?
Now I have another thing to be scared out of.....

Oct 19, 07 - 08:43 am Comment from: critic

@macromancer

How the hell do you come to that conclusion from this study?

I would think that the reason more people don't jump on the iphone bandwagon is that most people are in contracts and don't want to pay termination fees.

Personally, I am a lot happier with AT&T;than i was with T-Mobile (especially in terms of geographic coverage), which is the only comparison that is worthwhile since those are the two large GSM carriers.

Oct 19, 07 - 08:46 am Comment from: @ the 84 Mac guys

Why is only Apple coming up with hugely innovative technology?

Not sure I can answer your question, but I have an opinion wink

First, other companies do come up with new ideas, and even has some success at different products. What helps to set Apple apart is that Apple often puts together a package deal, that is to say, a product that brings all the details together. The iPod as an example was not the first MP3 player, but with a new way of handling a person's music it became a success.

Also, Apple seem to grasp what is a real problem in a lot of technology, making a product simple to use. How often do you see a product that has many features, but a person is required to spend hours in front of the manual to get a feature to work. Entire books could be written about the different focus between Apple and some of their competitors, but I see the main difference being that Apple works to solve problems, and make a product reasonably simple to use.

Oct 19, 07 - 08:54 am Comment from: Romeodawg

Yeah I wonder what would have happened if the iPhone wasn't cut off at the knees by ATT's awful service... If they were with Verizon or unlocked... the mind reels.

Oct 19, 07 - 09:03 am Comment from: Dextroamphetamine

The sexy iPhone is turning Ma Bell into one hot multi-touch MILF.

Oct 19, 07 - 09:04 am Comment from: nutcracker

@TT

instead of saying the 'Bejesus', MDN chose to use the term 'bejobs'; a tongue-in-cheek reference to Window's Journalists' accusations that we Mac users are a 'bunch of kool-aid drinking cultists' and that we all think SJ is 'God'.

So, naturally, any reference a Mac user might make to any diety or spiritual leader would replace the name with of that of His Majesty, SJ. i.e. 'The Lord Jobs', 'In Jobs We Trust', 'The Dhali Jobs', etc. because, as I'm sure you're well aware, we are all just a bunch of mindless sheep (wink, wink).

Oct 19, 07 - 09:05 am Comment from: Marty

You know the iPhone really isn't all that good...

I've tried it for quite some time. Sure it's revolutionary, but its cumbersome, slow and currently insecure.

I really don't like the idea of AT&T;, which allows the NSA to tap the internet and phone system without a warrant or concern for our privacy, access to information stored on iPhone devices.

Just think about it, your address and phone numbers of the people you contact, good or bad. Right there for the government to watch.

What happens if your good friend turns out to be a terrorist or a drug dealer?

Yep, your guilty by association.

I prefer the phone being a seperate device, small, slim, long battery life, inexpensive to own and less work to operate.

Oct 19, 07 - 09:08 am Comment from: Bill in Providence

As others have hinted at, just wait until the NanoPhone hits the streets, and Apple fills out the handset category. I say this is much bigger than the iPod, but the Mac is the biggest factor of all. Boys, these are the good old days!

Oct 19, 07 - 09:11 am Comment from: Bizarro Ballmer

Jebus! That's incredible.

Oct 19, 07 - 09:13 am Comment from: Anthony

Here's why Apple is successful:

Many tech companies try to create products that can do "everything". Look at MicroSoft Office, it is a very "powerful" application suite with so many great features that thing could run your life.

The problem with those companies is, they try doing so much with their products that the products become jacks of all trades, masters of none. The fact that Microsoft Office has all of these powerful accounting equations that are important for business executives becomes pretty meaningless when Excell can't even multiply!

Apple's business model has always been we are going to approach very specific tasks and do them remarkably well. Once we get a handle on those tasks we may add more features, make it more complex, but we are never going to sacrifice the power of our current products/applications etc. That's why the iPhone is so great. It didn't try to be a tablet, it didn't try to be anything other than a great Phone, Wireless Internet Communicator, and iPod. Those three things Steve Jobs talked about, nothing more.

It's running MicroSoft Word, Pages, Keynote, iLife, etc. because right now Apple wants to nail a current feature set. Once that is set, I would anticipate them adding features, but only once the iPhone passes their rigorous quality tests.

Oct 19, 07 - 09:16 am Comment from: FlyTrap

Why is only Apple coming up with hugely innovative technology?

Have you ever compared the prices of Apple Store items with others?

The markup is incredible and you don't get a whole lot of value for what you pay for with some items.

Take for instance Apeture, a $300 program that doesn't do a hell of a lot, is slow to force a hardware upgrade and is buggy as hell.

Remember the discontinued iPod HiFi?

People were not buying it because one could get a much better, real stereo system for a lot less.

You buy Apple, your going to pay. The only way it's cheaper is lower total cost of ownership for their computers and operating system compared to Windows boxes, provided you don't know how or want to know how, to secure a Windows box.

If your a geeks geek, a Windows box is a cinch to build cheap and operate securely.

Oct 19, 07 - 09:23 am Comment from: TowerTone

Nutcracker
thanks. I was beginning to think it meant "bejobs" as in "B.J.", and I have never had one of those scared out of me, which sounds kinda cool.

Monster: Boo!!!
Me: Oooohhh. Thanks, man......or wolf.

Oct 19, 07 - 09:33 am Comment from: Math Geek

@The 84 Mac Guys

“Why is only Apple coming up with hugely innovative technology?”

Good question. Here’s a possible answer.

Apple produces a franchise and the other PC (and handset) manufacturers make commodities. You can substitute other manufacturers products and get the same features but there is no substitute for Apple computers or the iPhone.

As a result, Apple has a different philosophy for survival in the marketplace than the other “technology” companies. The other manufacturers compete based on cost savings. This is what mature businesses do best. Unfortunately, the efficiency and creativity don’t mesh well. Bean counters don’t understand the creative process and prefer to take a shortsighted view of their company’s prospects. They may claim to do research, but its research is probably focused on technologies that maximize efficiency.

Innovation is Apple’s DNA. For a company like Apple, the only way to survive is to distinguish your products from the others. The “Think Different” campaign was brilliant and explains why Apple has had its amazing turnaround. Apple makes products that are not easily aped by other manufacturers. Several years ago, their survival depended on it. Apple’s survival is no longer in doubt, yet they still maintain this philosophy. I think Steve Jobs deserves all the credit for the creative spirit ingrained in the company. His replacements/predecessors could not understand this and almost rode the company into oblivion.

Additionally, Apple makes the whole widget, the software/hardware/peripherals/service. Unlike others, they can integrate these in ways that others can’t imitate. This also allows Apple to monetize their innovation. It’s also why people thought Apple would do a MVNO rather than partner. It’s also why the appleTV has not been a priority (studios are not cooperative).

Apple should be a good case study for future business classes.

Oct 19, 07 - 09:39 am Comment from: Rob

Hey, MDN, where's that laughing Ballmer video?

Oct 19, 07 - 09:53 am Comment from: TomByron

Pretty interesting that Razr V3 has sold more than iPhone if the survey is Q3 and Q3 alone (July-September) - there must be something fishy about that (= survey included handsets sold during the whole 2007 or something similar).

Oct 19, 07 - 10:01 am Comment from: Paul Johnson

@ Marty

Well, maybe you can tell us which telecommunications didn't comply with the NSA warrantless wiretapping program.

Don't say Qwest, because the noncooperation occurred before 9-11. The latest disclosure suggest strongly that Qwest changed their minds thereafter: http://www.betanews.com/article/How_Verizon_Turned_Over_Surveillance_Documents_Without_Court_Order/1192551985

Thanks for the anti-iPhone FUD.

Oct 19, 07 - 10:04 am Comment from: Hyperbilirubinemia

"Would I trade 96% of the market for 4% of the market? I want to have products that appeal to everybody," he said. "We'll get a chance to go through this [Apple versus Microsoft debate] again in phones and music players. There's no chance that the iPhone is going to get any significant market share. No chance. It's a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get."
- Steve "Pull My Finger Or You're Fired" Ballmer

Oct 19, 07 - 10:04 am Comment from: R2

Razr is still tops? Wow, what has it been, 3 years?

I thought the LG Chocolate knocked it off its perch?

I can see why, though. Out of all the plain, cheap, vanilla flip phones I'd still rather have the Razr over mostly everything else. Aside from the interface it was trouble free for me. Had great reception.

Oct 19, 07 - 10:12 am Comment from: 2 Cents

@Marty - get a grip.

"What happens if your good friend turns out to be a terrorist or a drug dealer?" How good a friend are they if you don't know this? And if you do, how dumb are you?

Oct 19, 07 - 10:15 am Comment from: @the 84 mac guy

I have been using Macs since 1984 as well and loving it (The non Steve Jobs years were a little rough though). The answer to your question is yes, everyone out there is totally incompetant and has little taste. I see it in my business as well. The problem is most of the customer base has little taste as well. They get easily ripped off and enjoy it most of the time. It's nice to see Apple sell great products to a larger and larger audience. Maybe it will rub off so people's expectations and taste are raised for other types of products. Look at the US car industry compared to European cars. It's a joke. European companies definitley have better tasteful/quality oriented design skills than most US companies. I don't agree with their socialistic societies though.

Oct 19, 07 - 10:15 am Comment from: BustingTheSkullsOfIdiots

If your best friend is a terrorist, the feds are going to be interested in you. They'd be remiss if they weren't! Please don't post such asinine hypotheticals.

Oct 19, 07 - 10:21 am Comment from: BC Kelly

The 84 Mac Guys ask:

"Is every other company out there totally incompetent. Why is only Apple coming up with hugely innovative technology?"


I have a theory wink

I call it the "McDonalds Syndrome"

(Or other phrases with the same concept: Quality -vs- Quantity, Bigger is Better, Whoever Dies With The Most Toys Wins, etc)

Of course McDonalds sells a LOT of hamburgers, but no way is it a gourmet restaurant (ut oh, I used a French word, try to keep up).

However, to many it IS their definition of "dining out". And that should scare the be-ballmer/gates out of the rest of us.

Apple/Mac may not be perfect, but ...

In the Land of the Blind, the One Eyed Man is King



Thanks, BC


MDN Magic Word - matter

As in: Yes, some things do

Oct 19, 07 - 10:53 am Comment from: ChrissyOne

@ Marty

Less work to operate? Were you born without hands?

Oct 19, 07 - 10:54 am Comment from: Believe

The iPhone has made such an influence in the market that Sprint is going to offer the HTC Touch to remain competitive.

Oct 19, 07 - 10:56 am Comment from: ChrissyOne

@ Hyperbilirubinemia

And that says it all - Cheap = Appeals to Everyone. That's all it takes, the Cheap. You can tell by the way the man dresses and presents himself that he's right. o.O

Oct 19, 07 - 11:05 am Comment from: TowerTone

I though Bush, INC. was not doing anything about terrorism before 9-11....

they just wanted a head start on trashing the Constitution, didn't they?...I mean, what else could it be?

Oct 19, 07 - 11:41 am Comment from: Martin

i expected the iPhone to be the best selling phone, this is surprizing.

MW million :D

Oct 19, 07 - 11:43 am Comment from: @TowerTone

Idiot. As in, "you're an..."

Oct 19, 07 - 11:48 am Comment from: Nick

Down with Iran-Syria!!!! Russia is slime!!!! China is too!!!!!

Oct 19, 07 - 12:50 pm Comment from: ibookfast

It is time for detente before we waste millions more on death and destruction again. The Military-Industrial-Complex is a monster who feeds on us, it's time to kill it. Don't fall for the psy ops, antagonism only encourages the beast.

One planet, one humanity.

We just need more wisdom in our technological design, creating enough to go around.

The Dalai Lama - “Where ignorance is our master, there is no possibility of real peace.”

Oct 19, 07 - 12:54 pm Comment from: ibookfast

détente

Oct 19, 07 - 01:10 pm Comment from: Dextroamphetamine

Re: Speaking of the Dalai Lama

This is my favorite quote.

Carl Spackler: So I jump ship in Hong Kong and make my way over to Tibet, and I get on as a looper at a course over in the Himalayas. A looper, you know, a caddy, a looper, a jock. So, I tell them I'm a pro jock, and who do you think they give me? The Dalai Lama, himself. Twelfth son of the Lama. The flowing robes, the grace, bald... striking. So, I'm on the first tee with him. I give him the driver. He hauls off and whacks one - big hitter, the Lama - long, into a ten-thousand foot crevasse, right at the base of this glacier. Do you know what the Lama says? Gunga galunga... gunga, gunga-galunga. So we finish the eighteenth and he's gonna stiff me. And I say, "Hey, Lama, hey, how about a little something, you know, for the effort, you know." And he says, "Oh, uh, there won't be any money, but when you die, on your deathbed, you will receive total consciousness." So I got that goin' for me, which is nice.

Oct 19, 07 - 01:19 pm Comment from: @ibookfast

Screw that. Wipe that beady eyed little Iranian devil and his cohorts off the map!

Oct 19, 07 - 01:58 pm Comment from: effwerd

The fact that a device at iPhone's price point is already #4 in the U.S. (where people have been conditioned to expect highly-subsidized phones) ought to scare the bejobs out of the other device makers and carriers.

Well, only if these competitors are clueless idiots. Not saying they aren't, but if I discovered that a loss leader can easily become a high margin profit generator, I'd be pretty stoked.

The real problem here is that the market is saturated with mediocre capitalists, which is to be expected from our contemporary corporation model of risk management. When someone like Steve Jobs is considered a genius and an obvious outlier in CEOs, you've got a hint of a much larger problem.

Oct 19, 07 - 02:03 pm Comment from: ken1w

If iPhone is AT&T;'s top device at $399, any criticisms that it's too expensive start to sound really foolish.

Oct 19, 07 - 02:38 pm Comment from: mackle

@flytrap
apple does not make products designed to fit every single person's needs. they design products that they would like. 90% of the time they are hits. using your own sense of value is a powerful predictor of success if you are competent in doing that objectively.

on the ipod hifi. it fit a niche. apple figured everyone that needed one bought one. no need to go to a rev2. a normal company would have been happy with the sales of rev1 and added three features and called it rev2. the one i bought will last 50 years. certainly would not recommend it as a general purpose hifi if you have to only own one, but its features and quality trump anything out there for what it was designed to do. that is the nature of apple products. making a generalization about ipod hifi without owning one is like commenting on the features of an iphone without using it for a week. i have people stop by my office even now, with their new iphone saying i can't believe i waited this long to buy one. it does so many things better than anything else i have ever used. most of these people would never consider buying a mac. go figure.

Oct 19, 07 - 04:36 pm Comment from: lurker

Actually, I think the iPhone is the only mobile phone that has BUYERS. The rest are at least partially gifted to the subscriber, who then pays for the phone through inflated monthly subscription fees. If the true cost of the other phone was revealed to the customer, by virtue of paying full price for them, iPhones would sell even faster. The extra true cost of the iPhone is a lot less than many, many other handsets and the added value of the iPhone functionality more than offsets.

Oct 22, 07 - 03:44 pm Comment from: Rudge

This is great news. I've enjoyed watching the new iPhone commercials and I've even seen some iPhones in TV shows (check out what phones they use on "Moonlight" Friday nights on CBS). Congratulations to Apple for coming out with such a great product.

Oct 24, 07 - 07:10 am Comment from: Steve

"Congratulations to Apple for coming out with such a great product."

Thanks for the virtual BeJob

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