Strategy Analytics, based on data from its ProductTrax program, reported on Friday that Apple and AT&T have sold 1.325 million iPhones and that it is AT&T's top selling device accounting for 13 percent of AT&T's handset sales.

"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," Mr. Gilbert said. "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, Mr. Gilbert reported, the RAZR V3 is the top selling mobile phone in the U.S., but it appears to be losing momentum.

The report provided iPhone demographics. "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."

While customers are very happy with the iPhones design and features, the report noted that customers are "less enamored of actual iPhone reliability, battery life, documentation and customer support."