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Apple iPhone Passes The MotoRazr To Be No. 1 Handset In The U.S.

Finally. According to a new report from The NPD Group, the Apple iPhone 3G has surpassed the Motorola Razr V3 to become the top-selling handset in the United States.

Motorola keeps on taking a pounding. Last week it lost the top handset provider spot to Samsung, and now it is losing the top handset spot to Apple.

"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. "Four of the five best-selling handsets in the third quarter were optimized for messaging and other advanced Internet features."

The top handset models in rank order, based on unit sales in 3Q, were as follows:

1. Apple iPhone 3G
2. Motorola Razr V3 (all models)
3. RIM BlackBerry Curve (all models)
4. LG Rumor
5. LG enV2

What's more interesting is the trend outlined by NPD in what it is that consumers want out of their phones. Having a camera was necessary for 43% of buyers. Text and picture messaging capabilities were paramount to 36% of buyers. Bluetooth was available on 83% of all handsets sold. Music playback capabilities were included on 68% of phones. Lastly, QWERTY keyboards were available on 30% of handsets sold during the third quarter.

People are beginning to use their handsets for more than just voice calls, though it is obvious that voice calling still remains the No. 1 feature of a cell phone.

"A growing data divide continues in cellular handsets," Rubin said. "Those who see the value in wireless Internet access are justifying the investment, whereas voice-centric users have little incentive to upgrade, which is obviously detrimental to operators who seek to sell data plans and media-access services to their subscribers."

Rubin isn't kidding. If you're not going to use the mobile Internet or other media-rich features, there's really no reason to adopt a smartphone.

Whether or not the iPhone 3G can continue to hold off Motorola (and RIM) remains to be seen.

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