iPhone Outsells Smartphones in July

Apple's iPhone outsold all smartphones in the United States in July, its first full month on sale, accounting for 1.8 percent of all U.S. mobile handset sales, research group iSuppli said on Tuesday.

ISuppli reiterated its forecast that Apple would sell 4.5 million iPhones this year, rising to more than 30 million in 2011.

The two models of the iPhone on the market sold more than Research in Motion's Blackberry series, the entire Palm portfolio and any individual smartphone model from Motorola, Nokia or Samsung.

Sales equalled those of LG Electronics' Chocolate, the most popular feature phone on the U.S. market, iSuppli said.

ISuppli classifies the iPhone as a crossover phone that competes with both smartphones, which have personal computer-like functions such as e-mail, and feature phones, which have extras such as cameras and music players.

"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 said.

"Apple achieved this in the face of numerous, well-entrenched competitors."

Most buyers of iPhones in the United States in July were male, under 35 and had a college degree, iSuppli said.

A quarter of those who bought an iPhone switched to operator AT&T, which has an exclusive service agreement for the iPhone in the United States.

The iPhone will go on sale in Europe later this year.

ISuppli gathered its data through a consumer survey of 2 million participants in the United States that it carries out online once a month.