Apple's iPhone 3G topped the US sales charts in the third quarter, according to market research group NPD.
The phone, which went on sale in July, displaced Motorola's Razr as the most purchased handset among consumers, NPD added.
Motorola's Razr, first introduced in 2004, had been the number-one handset for 12 consecutive quarters. According to NPD, the Razr V3 fell to second place behind the iPhone 3G; RIM's BlackBerry Curve came third; LG's Rumor came fourth; and the LG enV2 came fifth.
Since the original iPhone was launched over a year ago, the industry has been stirred up by its sleek, button-less design and advanced web-surfing capabilities. Many industry experts have said the phone has revolutionised the mobile-phone market. The iPhone has certainly spurred into action many of Apple's mobile competitors, which have been scrambling to come out with touchscreen smartphones of their own.
Although the first iPhone proved popular, it appears that the new version of the phone, which supports 3G network speeds, is even more popular. For its fiscal fourth quarter, Apple reported it had sold 6.9 million iPhones — more than were sold during all previous quarters combined. As a result, the company easily met its goal of selling more than 10 million during the 2008 calendar year.
One of the biggest drivers for the new iPhone is probably the price tag. AT&T, the exclusive carrier in the US for the iPhone, is offering it for $200 (£128) with a two-year contract.
The increased speed on the 3G network and Apple's App Store have also probably helped to boost the phone's popularity.
As the economy weakens, the trend for iPhone sales may change. NPD noted in its report that overall US handset sales dipped 15 percent compared with a year ago. Revenue on handsets fell about 10 percent.
While the $200 cost of the actual iPhone may not deter consumers even in economic hard times, the cost of the service plan might.
Currently, AT&T customers pay at least $70 a month for a plan that offers voice and data service. Text-messaging plans can be purchased additionally. The unlimited texting plan is $20 extra a month. AT&T's cheapest voice plan is about $40 a month with a two-year contract, and it will probably come with a free phone.
Executives for the major US wireless operators have said that consumers are unlikely to cancel their mobile-phone service as they cut back on their monthly household budgets. However, they could downgrade their service or, at the very least, wait to upgrade to a more expensive plan, such as the iPhone plan offered by AT&T.
