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Sun, Mar 21, 2010 - 11:51 AM EDT  —  AAPL: 222.2499 (-2.4001, -1.07%)  |  NASDAQ: 2374.41 (-16.87, -0.71%)

Apple’s iPhone 3G overtakes Motorola’s RAZR as best-selling U.S. handset
Monday, November 10, 2008 - 02:47 PM EDT

According to The NPD Group, the leader in market research for the wireless industry, Apple's iPhone 3G surpassed the top-ranked Motorola RAZR as the leading handset purchased by adult consumers (NPD does not currently track corporate/enterprise handset purchases) in the U.S. in the third quarter (Q3) of 2008. RAZR had been ranked by NPD as the top-selling consumer handset for the past 12 quarters.

Even with stronger consumer sales of iPhone, and the mobile phone market's normal seasonal uplift after Q2, domestic handset purchases by adult consumers declined 15 percent year over year in Q3 to 32 million units. Consumer handset sales revenue fell 10 percent to $2.9 billion, even as the average selling price (ASP) rose 6 percent to $88.

"The displacement of the RAZR by the iPhone 3G represents a watershed shift in handset design from fashion to fashionable functionality," said Ross Rubin, director of industry analysis for NPD, in the press release. "Four of the five best-selling handsets in the third quarter were optimized for messaging and other advanced Internet features."

The top handset models in rank order, based on unit sales in Q3, were as follows:

1. Apple iPhone 3G
2. Motorola RAZR V3 (all models)
3. RIM Blackberry Curve (all models)
4. LG Rumor
5. LG enV2

When it comes to the specific features that motivated U.S. consumers to purchase, 43 percent of handset buyers cited the need for a camera and 36 percent noted the ability to send and receive text messages. Mobile phones with a QWERTY keyboard experienced the greatest year-over-year rise in sales; 30 percent of handsets were sold with this feature in Q3 2008, versus just 11 percent the year prior. Also this quarter 83 percent of phones purchased were Bluetooth enabled (versus 72 percent last year), and nearly seven in 10 (68 percent) of phones purchased in Q3 were music enabled (versus 49 percent last year).

"A growing data divide continues in cellular handsets," Rubin said. "Those who see the value in wireless Internet access are justifying the investment, whereas voice-centric users have little incentive to upgrade, which is obviously detrimental to operators who seek to sell data plans and media access services to their subscribers."

NPD compiles and analyzes mobile device sales data based on more than 150,000 completed online consumer research surveys each month. Surveys are based on a nationally balanced and demographically representative sample of U.S. adults. Results are projected to represent the entire population of U.S. consumers age 18 and older.

Source: The NPD Group, Inc.

Jim Goldman writes or CNBC, "Everything Steve Jobs said about the iPhone seems to be coming true. This little phone is spawning a major consumer and business revolution, with sales far exceeding so many of those early expectations. People make such a big deal about how gadgets just won't sell in this economy, but I would argue that the iPhone's value proposition—especially in an economy like this one—make it even more compelling: An inexpensive web browser for online access; email; a game-player that already technologically rivals offerings from Sony and Nintendo; a slick video player; an iPod; a camera; a robust, and growing-everyday applications store; oh, and it makes phone calls, too. All of that in one device. And all for $199, or $100 cheaper than the new Bold from BlackBerry."

Goldman writes, "We can talk and talk and talk about how consumers aren't buying gadgets this holiday shopping season. But if they can get six or seven gadgets in one, iPhone could become the single best gadget of choice this year, even in a down economy, and that might mean its momentum may only be just beginning."

Full article here.

[Thanks to MacDailyNews Readers "Fred Mertz," "Robert C.," and "RadDoc" for the heads up.]

MacDailyNews Take: In May 2007, Motorola's then-Chairman and then-CEO Ed Zander boasted that his company was ready for competition from Apple's iPhone, due out the following month. "How do you deal with that?" Zander was asked at the Software 2007 conference. Zander quickly retorted, "How do they deal with us?" - Ed Zander, May 10, 2007

Bloodbath.

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Reader feedback page 1 of 1 pages:
Nov 10, 08 - 03:52 pm Comment from: Rawrr

I never would have guessed a year ago that the iPhone would ascend to dominance so fast.

Nov 10, 08 - 04:08 pm Comment from: bc

not only that, some are offering rebates that PAY YOU $30 to take the RAZR, and I guess they're still not biting:
http://daringfireball.net/linked/2008/11/10/razr-vs-iphone

now, how's Zander going to deal with that?

Nov 10, 08 - 04:10 pm Comment from: Bill in Providence

Of course you had to know the economy was going to tank when the Wall Street Journal published the shot of Paulson sporting a RAZR. All that coin, and he's slumming it.

Nov 10, 08 - 04:10 pm Comment from: BillyBob@home

I loved my razr, and upgraded to a 3G iPhone from it.

Razr phones weren't the best as far as being sturdy goes. Mine was replaced under warranty FOUR TIMES in two years for screens going out, reception going south, etc... and I never once dropped it or slammed it into anything.

Of course, most of my friends have replaced their iPhones under warranty too, so it may just be the nature of the beast so to speak.

Nov 10, 08 - 04:14 pm Comment from: chaz

That's assuming they adults can figure out the compelling reason to buy an iPhone. The majority sure aren't discerning PC buyers!!

Nov 10, 08 - 05:05 pm Comment from: jjjj

that blackberry storm commercial looks interesting. maybe RIMM has learned a thing or two...

oh wait, apple doesn't do enterprise.

Nov 10, 08 - 05:09 pm Comment from: jtc

I hated my razr. battery life was horrible and my screen died on me so needed to get replaced. Finally got the iphone as a company phone and tossed the razr.

Nov 10, 08 - 05:35 pm Comment from: Viktor

"How do they deal with us?"

Does any body knows if Zander have already responded or no? I know he was fired from motorola.

Nov 10, 08 - 06:32 pm Comment from: Jacob

The V3 RAZR is alright, although I find the one I purchased more recently to be of subtly lesser quality than the original one I had.

The sole reason I use it is to make phone calls, I have an iPod touch for every other use. The only reason I don't have an iPhone is that I don't want to pay a monthly voice charge. If I could pay $30/month for data and have the voice plan be pay-as-you-go, I'd go for in in a heartbeat. Doing anything more than making voice calls with the RAZR I find to be very painful, but it's small and I like flip phones. I don't want or need text messages, I don't use voice calling a whole lot, but I would like the ability to use 3G data anywhere rather than being restricted to WiFi.

Hopefully at some point in the future the iPhone will become a bit less restrictive and I will be able to just buy one and pick the plans I want for it. I wouldn't mind paying more up front just to have the freedom to have pay-as-you-go voice rather than a monthly voice plan. There is no point in paying another $30-40 a month for a bunch of services I don't need, whereas right now I pay exactly nothing a month for my cell phone (more like about $50 for 250 minutes a year).

Nov 10, 08 - 07:20 pm Comment from: KenC

My business partner just got rid of his Verizon Razr, it was constantly running out of battery life, and got an iPhone.

I just bought two iPod Touches with my AMEX points, to give as Xmas gifts to my mom and sis. They can use them to call me thru Fring, over their Skype accounts. If you have wifi the Touch is great.

Nov 10, 08 - 10:33 pm Comment from: Greg L

Odd. I’ve got a RAZR and I bought my wife a 3G iPhone. #1 & #2

Nov 10, 08 - 11:19 pm Comment from: G4Dualie

You know moto is kicking themselves for letting Jobs walk out of that initial meeting.

Do you suppose Jobs' sales pitch for a Moto-made phone resembled anything like the one that's burning up the market right now? I guess Moto couldn't bring themselves around to think different.

Moto is a lesson in what happens when you believe there is no room for product improvement or more than one way of doing business. But, they loved their razor didn't they?

Actually, it's a fitting lesson for the entire telecom industry who learned from Apple that you can't continue to suppress technological advancements just because your software is incapable of utilizing all of the features the manufacturers were developing.

It blew up in their faces and their five-years behind the power curve. Makes you wonder what Apple will be doing in five years...

Nov 10, 08 - 11:22 pm Comment from: G4Dualie

That's "they're five years behind" not their... doh!

Nov 11, 08 - 11:49 am Comment from: Rudge

Well, duh!!!! The last time I was in a phone store, I asked the sales clerk if they had any RAZR handsets, and the guy told me that they aren't selling them anymore, so yeah, I guess that the iPhone is surpassing RAZR sales. It's easy to surpass something that's no longer being sold.

I still love the look of the RAZR. A nice thin flip phone with a very different look that was out there. I loved that Motorola made an iTunes RAZR that worked even better with your Macintosh, although you only had a small amount of space for music.

Unfortunately, I've heard many horror stories that the "RAZR's curse" was that it was fashion before form. Sound familiar? The RAZRs thin design made it easier to brake in many ways. It was so thin that you could actually bend the phone. The cool, flat button design made it difficult to text message. The sound, battery life, reception, screen cracking, and buttons stop working, was always sub-standard than with other phones. Plus there was that whole Motorola OS that was so complicated to use.

But, it was so damned cool looking. I was hoping that with all of the new versions that the basic design could continue and maybe they would make the RAZR more sturdy, but maybe not now.

Congratulations, iPhone. Now if iPhone could make a flip phone, that would really be cool. wink

Nov 11, 08 - 02:08 pm Comment from: twilightmoon

Jacob: "I would like the ability to use 3G data anywhere"

That would require 3G data coverage to be everywhere. That's currently far from the case. Maybe you live in a heavily 3G saturated area, in which case good for you, perhaps you should buy a 3G iPhone, but most Americans still don't live in a 3G area. And that's not likely to change very quickly.

Nov 15, 08 - 02:40 am Comment from: Lisa P

Comparing the Motorola KRZR and the RAZR V3i. These phones are among the most popular in the United States, but most people do not know the differences between them and why they might want to purchase one instead of the other. The research firm NPD Group recently, in an Engadget report, stated that the iPhone 3G has overtaken the lead in cellular phone sales, dropping the Motorola RAZR out of the top slot for the first time in almost 10 years. The shift would indicate that American consumers are looking for a phone that offers more features than just a handset for making phone calls. The recent massive advertising campaign hasn’t hurt Apple either, even if cell phone sales have actually dropped 15 percent since Christmas 2007. Apple still has to be happy with their position as the trendsetter in gadget style and taste. Eventually, America’s cell phone choices will seem far more full featured than what the Asian market already has access to. However, when it comes to short-term payday cash loans, America’s choices are broad. The economic crunch that is on combined with the looming Christmas season will force some people will to look for a little help between paydays. If taken with care and responsibility, payday cash can be a useful tool, like an iPhone.

Click to read more on <strong>Payday Cash<strong>

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