September 4, 2007 11:10 AM PDT

Study: iPhone tops July smart-phone sales

In July, Apple's iPhone topped all smart phones in U.S. unit sales, according to a consumer survey released Tuesday by market researcher iSuppli.

During its first full month of sales, Apple's highly anticipated smart phone grabbed 1.8 percent of the U.S. consumer mobile-handset market, according to iSuppli. The research firm's survey of more than 2 million U.S. consumers indicated sales of 220,000 iPhones in July. In its first 30 hours, before its fiscal third quarter ended on June 30, Apple sold 270,000 iPhones.

"While iSuppli has not collected historical information on this topic, it's likely that the speed of the iPhone's rise to competitive dominance in its segment is unprecedented in the history of the mobile-handset market," iSuppli noted in its report.

The research firm predicts that 4.5 million iPhones will ship during the 2007 calendar year, with figures rising to more than 30 million in 2011. But while the initial sales of the iPhone have been brisk, some market watchers had expected sales to be three times larger in the initial 30 hours that they were on sale.

Nonetheless, the iPhone outsold all smart phones in July, including the BlackBerry series, Palm's portfolio of smart phones, as well as those of Motorola, Nokia, Samsung Electronics and others sold through a branded service provider. iPhone sales, meanwhile, rivaled those of LG Electronics' Chocolate smart phone.

iSuppli categorizes the iPhone as a crossover phone, putting it between the smart-phone and feature phone categories.

The research firm's U.S. Consumer Panel Survey found that 52 percent of iPhone buyers were male and that 57 percent of all domestic buyers were ages 35 years or younger. Approximately 25 percent of purchasers switched their mobile phone service to AT&T, which currently is the exclusive U.S. carrier for the iPhone.

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19 comments

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More baseless iphone hype
First, the iphone isn't a smartphone. You'd think cnet would be smart enough to figure that out. It's a "feature phone", as its features aren't easily extensible via 3rd party applications. Now, when you compare its sales to other feature phone sales, we find it actually sold as many as the stale LG Chocolate. Of course, LG didn't spend tons of money shilling the chocolate like apple did the iphone, or have the media lackeys at their feet. Where are the big headlines "LG Chocolate matches iphone sales"? If anything, the headlines should be heralding the HUGE drop-off in iphone sales. apple sold more units in the first two days as it did in the entire next month. Based on this trend, where does isuppli come up with their figures of 4.5 million sales in 2007? Even ignoring the drop in sales, and assuming they might hold steady, despite the apparent market saturation which is already stagnating iphone sales, my math shows sales of just over 1.5 million. Don't know where they're getting three times that many from. Not that many folks are going to run out and buy a $600 phone that requires another $2000 in service commitments as Christmas presents.
Posted by Magicland (603 comments )
Reply Link Flag
And your facts are from where?
So you don't like apple, that is apparent by your rant, but they have sold a heck of a lot in a short time and from just about all I have read, it has nearly lived up to the hype...

Motoral spent as much on the razor and it didn't sell as well as this....

I seem to remember everyone saying the iPod would not sell and would be relagated to "newton" status....I bet you were one that said the iPod was "stupid"

The market will determine the fate of the iPhone and so far the market is saying it is good...
Posted by grossph (172 comments )
Link Flag
Read the report
You obviously didn't read much about this report before posting
that comment. As with any marketing report, a CNet quick
summary isn't going to say much about how the numbers came
to be. In short, the reason they're predicting 4.5 million is due
to an expected massive surge as the holidays approach, and the
expectation of at least some foreign (european) markets coming
online, and the possibility of new models.

iSuppli does not classify the iPhone as a smartphone, it
classifies it as a crossover phone. Regardless, it wins either of
those categories.
Posted by drhamad (117 comments )
Link Flag
Wrong!
Ou are completely wrong on the first five things you mentioned.
I stopped reading after that.

If you don't like Apple and it's products fine. But get yor facts
straight before you run off at the mouth.
Posted by technewsjunkie (1265 comments )
Link Flag
You're right, let's talk about baseless Zune Hype
Not THAT's baseless hype.
Posted by technewsjunkie (1265 comments )
Link Flag
Right on
Considering that Apple just dropped the price of the iPhone down $200, only after two months from its debut, I'd say that confirms the iPhone is tanking.

From everything I know, no manufacturer discounts its products because they are doing well. And I certainly have not seen a manufacturer, after so much hype and two months into sales, slash the sales price of an item by 33%.

I read somewhere that the part of the "sales" numbers included iPhone's that Apple delivered to AT&T for sale. So the numbers are skewed and inaccurate.

Lastly, I don't think that even at $400 people are going to rush out and buy the iPhone. It's a flawed device at any price. Yeah it's a cool looking multi-media thing with a phone included as an after thought [pretty much how Apple is now marketing it], but as you say, it certainly is not a smartphone.

I kind of chuckled when Steve compared it at his presentation to all the other smartphones out there.
Posted by RotoRooterGuy (31 comments )
Link Flag
Not smart phone....but Brilliant phone
Once again Apple shows everyone how to innovate and correct a
flawed market. Consumers are a lot smarter now and can see
brilliance in the iPhone.

Now sit back and watch the bloodbath as Microsoft and others
copy as much as they can... puhleaze.
Posted by MaLvaDo39 (365 comments )
Reply Link Flag
Not really
All Apple really did was improve music and video usablity on phones. As far as everything else (excluding actual voice calls), Blackberries and WM6 is still way ahead of the iPhone. But we shouldn't expect Apple to get everything write the first time. It did improve on what it focused on rather well, but even Windows Mobile 2003 SE was pretty decent at music and video. WM2003SE also included Word Mobile and Excel Mobile which works as well as what the iPhone has now. And since WM2003SE, they have been improved on, so depending on what you want to do with your phone, is whether you go with an iPhone or not.
Posted by aka_tripleB (2211 comments )
Link Flag
iSuppli supplies their own data?
""While iSuppli has not collected historical information on this topic, it's likely that the speed of the iPhone's rise to competitive dominance in its segment is unprecedented in the history of the mobile-handset market," iSuppli noted in its report."

Translation: We have no data to back up our claim, but we'll make up claims anyways.

Um... right.

Somehow I'm not really going to count a company called 'iSuppli' as an unbiased source when it comes to iPhones. Seems just a leeeeeettle bit fishy to me.
Posted by Vegaman_Dan (6683 comments )
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iSuppli correction
I was incorrect in assuming that iSuppli had a link to Apple iProduct lines. I should have researched their services a bit more before posting.


I've done the research now.

iSuppli's business model is to look into emerging trends, predict market demand and then provide services to companies to supply those demands.

So... yes, they are analyzing the demand. They are also in the business of making up a demand where there isn't one in reality for their own financial gain. They definitely have a very close financial interest to make claims of market dominance when there isn't such. Anything that they can do that could potentially cause more of a demand means they can market their services to meet that demand and... yeah.

It's a good bit of PR and marketing disguised as news.
Posted by Vegaman_Dan (6683 comments )
Link Flag
Forget the hype, watch the people
Those people who don't believe the iPhone is going to be big just need to watch what happens when John Q. Public actually sees one.

I was recently in a Verizon store on company business when I got a call on my iPhone. Let's just say the place was packed and the store manager was not a happy camper when I answered.
Posted by rcrusoe (1305 comments )
Reply Link Flag
True...
It's not nice to point and laugh at people like that. The manager and customers should have treated you with more respect.
Posted by Vegaman_Dan (6683 comments )
Link Flag
The Zune
OMG LOL, never should have copied the IPOD Model...No Pod Casts,

No Contest!! Winth the New Ipod coming out without the phone (same look) it is time to close down the Zune Factory!!

Check Mate!!
Posted by RonningFamily (10 comments )
Reply Link Flag
Oops. Blackberries outsold iPhone 2-1 instead
<a class="jive-link-external" href="http://arstechnica.com/journals/apple.ars/2007/09/06/correction-blackberry-outsells-iphone-2-to-1-in-july" target="_newWindow">http://arstechnica.com/journals/apple.ars/2007/09/06/correction-blackberry-outsells-iphone-2-to-1-in-july</a>
Posted by kevindarling (10 comments )
Reply Link Flag
 

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