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iPhone p0wns Smartphone Market in July, Embarrassing Rivals

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Apple has reason to celebrate today. According to a new report published by iSuppli, iPhone topped the charts during the month of July, outselling every Smartphone on the U.S. market, even rivaling the most popular feature phone sold; LG's Chocolate.

I find this news particularly interesting because, since its launch, numerous Smartphone fansites have long contended that iPhone isn't a Smartphone, but rather a luxury feature phone. And therefore doesn't compete in the same market with Palm, Blackberry, Nokia, et al. Yet according to this report, iPhone managed to best every Smartphone vendor in sales, including Palm's entire line of Treos. Even Blackberry was soundly trounced by iPhone in popularity and sales.

Not bad for an alleged feature phone, eh? Hey, whatever helps you Blackberry and Treo fanboys sleep at night night, go right on living in that fantasy world you've created.

iSuppli was particularly bullish about iPhone's growth prospects, even projecting triple-digit growth over the next two years, topping out at 30 million units sold by 2011. Not surprisingly Apple stock is up nearly 4% at the time of this post.

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There are 3 comments. Add yours.

PrettyUgly says:

I've had the iPhone since launch day and as much as I love it, with the current limitations of it's software, I'd have to lean towards calling it the world's best feature phone. Until I can store files on it and run a few more useful apps I wouldn't really call it a smartphone.
And, you can't really say that out-selling Blackberry and Palm make it a smartphone. Certainly the Chocolate, with equal sales numbers isn't one. In fact, iPhones sales are more likely driven by people looking for the best feature phone they can get. If you surveyed iPhone owners to ask what they would purchase if the iPhone didn't exist I would bet that the LG Chocolate or a similar feature phone would top that list well ahead of any blackberry device.
Really, what I think Apple has done is create a phone that bridges the gap and appeals to people shopping in both categories.
Hopefully we will soon see a software update (file browser, enterprise, ringtones, games, apps...) that will clearly establish it's smartphone dominance.

admin#IM says:

It doesn't christen iPhone as a Smartphone, that much we agree on. But you can bet those numbers reflect a demographic that otherwise would have purchased Blackberries and Treos.
Anecdotally I've seen a large number of folks trading in iPhones for Smartphones. The same audience that buys a Treo is buying iPhones as well.

prestonjb says:

the iphone hyped in just like halo 3 or 'this is not a plastic bag'
as for sales over other (in particular) smart phones... the htc touch just finishing selling 800,000 units and it came out #after# the iphone... and it works with a stereo bluetooth headset!