STRATEGY ANALYTICS: iPhone Becomes AT&T Top Seller

Business Wire, Oct 18, 2007

iPhone Delivers an Estimated 1.1 Million Units in Q3

BOSTON -- The latest Strategy Analytics data from its ProductTRAX program projected that nearly 1.1 million units were delivered to US consumers through the combined AT&T and Apple outlets during Q3, totaling 1.325 million units since the iPhone was launched in late Q2. "The iPhone has become AT&T's top selling device, commanding some 13 percent of AT&T's overall handset sales, and the 4th top selling handset in the US market," according to Barry Gilbert, VP of the Strategy Analytics BuyerTRAX programs.

"Although the iPhone hasn't had an expansionary impact in the market, the iPhone has quickly assumed a leading market share position and raised the ante for smart devices," according to Mr. Gilbert. "The sales trajectory we are observing with the iPhone could make it the top selling device in the US over the next 1-2 quarters."

Currently, the top selling handset in the US continues to be Motorola's RAZR V3, however, this appears to be losing momentum as new and more competitive models that erode both its share and popularity are being introduced. ProductTRAX research notes that the top 10 handset models account for approximately 25 percent of total handset sales in a typical quarter despite an increasing number of device offerings.

"The typical iPhone buyer is upwardly mobile, college educated with a six-figure household income," according to David Kerr, Vice President of the Strategy Analytics Global Wireless Practice. "While the largest percentage of iPhone buyers is between 20-30 years old, the fact that nearly 25 percent were between 50-60 years old demonstrates that the device attracts buyers across a broad age spectrum." Thus far, iPhone users are quite satisfied with phone design and features, however, they are slightly less enamored of actual iPhone reliability, battery life, documentation and customer support.

ProductTRAX from Strategy Analytics captures these quarterly key metrics for handset buyers to support its sell-through volume estimations.

About Strategy Analytics

Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. For more information, see www.strategyanalytics.com