iPhone is Top Seller at AT&T

The iPhone, launched on June 29th, has been AT&T's best selling handset since that day. According to projections, Apple and AT&T have sold over 1.325 million handsets, representing 13% of AT&T's handset sales.

The early adopters of the iPhone have been categorized as young, affluent males. Still 25% of buyers were between the ages of 50 and 60. Sales are expected to increase, as Apple expects to gain a broader audience with its recent price drop.

The launch of the iPhone was expected to take business from its main competitors. Those most hurt by the iPhone have been Treo users along with Alltel and T-Mobile subscribers. Research in Motion (RIM), Sprint, and Verizon, although affected, have been able to limit their losses. RIM has been able to hold off the iPhone by offering media capable devices to its business customers. Sprint and Verizon have used their 3G networks and support for over-the-air (OTA) music downloads, two features the iPhone does not have, to keep subscribers.