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The iPhone Tops Them All

By now, you probably know that the iPhone beat the BlackBerry in the third quarter. But did you also know that, according to researcher NPD Group, Apple's (Nasdaq: AAPL  ) killer smartphone bumped off rivals in its bid to be the top U.S. handset?

The top five, in order of domestic units sold in Q3, were:

  1. iPhone 3G
  2. Motorola's (NYSE: MOT  ) RAZR V3 (all models)
  3. Research In Motion's (Nasdaq: RIMM  ) BlackBerry Curve (all models)
  4. LG Rumor
  5. LG enV2

Winning in good markets and bad ...
What this list won't tell you is how tough it's been to sell handsets lately. NPD reported a 15% decline in unit sales year-over-year. Handset revenue fell 10% to $2.9 billion.

The good news? Average phone selling price rose 6% to $88, which means that cell phones are out, smartphones are in. "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."

That's awful news for Motorola, whose compact RAZR had been the top seller for 12 consecutive quarters. So, too, for lightweight handset sellers LG and Samsung, and, to a lesser degree, Nokia (NYSE: NOK  ) . But it's really great news for Apple and RIM. I'd also give a tip of the cap to Palm (Nasdaq: PALM  ) here, were it still relevant in the smartphone market.

But, again, it's the iPhone that tops them all. Not so much because of innovation, though it is, but because of distribution. Partnerships with AT&T (NYSE: T  ) and Best Buy (NYSE: BBY  ) have allowed Apple to seed the iPhone into thousands of U.S. retail locations.

Looking at the numbers, I'd say the strategy is taking root.

Brrrrrrrring! It's related Foolishness calling:

Apple and Best Buy are Stock Advisor selections. Nokia and Best Buy are Inside Value picks. Try either of these market-beating services free for 30 days. There's no obligation to subscribe.

Fool contributor Tim Beyers had stock and options positions in Apple and a stock position in Nokia at the time of publication. The Motley Fool owns shares of Best Buy. It's disclosure policy wonders if a smartphone can ever be dumb.

Read/Post Comments (1) | Recommend This Article (3)

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  • Report this Comment On December 08, 2008, at 12:01 PM, freeiphone wrote:

    I think you are spot on there, I can find the iPhone in every store I look, but a Blackberry is not as easy. Also a pensioner could tell me what an iPhone is. She would make a pie out of a Blackberry. I got my iphone from - I could have chosen a different make, but the iPhone is much more marketable.

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